Oil Prices Tumble as US-Iran Talks Reduce Supply Uncertainty

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Oil prices dropped around 1% on Monday following progress in nuclear talks between the United States and Iran, easing concerns that the ongoing dispute could disrupt oil supply from the major Middle Eastern producer.

Brent crude futures fell by 70 cents, or 1.03%, to $67.26 a barrel at 0030 GMT, after gaining 3.2% on Thursday. U.S. West Texas Intermediate (WTI) crude dropped 68 cents, or 1.05%, to $64 a barrel, after a 3.54% rise in the previous session. Thursday marked the final trading day of the week due to the Good Friday holiday.

The U.S. and Iran agreed on Saturday to begin drafting a framework for a potential nuclear deal, with Iran's foreign minister confirming "very good progress" in the talks, as described by a U.S. official. This progress came amid further U.S. sanctions last week, including measures against a China-based oil refinery accused of processing Iranian crude. 

Concerns over a potential tightening of Iranian oil supply, along with hopes for a trade deal between the U.S. and the European Union, drove both Brent and WTI prices up by about 5% last week, marking their first weekly gain in three weeks.

In other developments, Russia and Ukraine blamed each other on Sunday for violating a one-day Easter ceasefire declared by President Vladimir Putin. Both sides accused the other of carrying out hundreds of attacks, with the Kremlin stating that no order was given to extend the ceasefire.

Paraphrasing text from "Reuters" all rights reserved by the original author