Oil prices slide as Trump hints at US-Iran nuclear deal progress

Oil fell for a second day after President Donald Trump said the US and Iran are getting closer to a deal on the country’s nuclear program.

Brent dropped below $64 a barrel, losing as much as 3.7% in London. Trump said Iran has “agreed to the terms,” without giving further details, News.Az reports, citing Bloomberg.

Earlier prices fell as NBC reported Tehran was willing to commit to not having nuclear weapons in exchange for sanctions relief, reiterating the country’s long-held position.

“In less than 24 hours, the narrative has shifted from the US imposing new sanctions on Iran to growing speculation that a diplomatic breakthrough may be within reach,” said Arne Lohmann Rasmussen, chief analyst at A/S Global Risk Management. “If a deal is concluded, it would increase the likelihood of a significant oversupply later this year, especially when combined with the planned production increases from OPEC+.”

Adding to the gloom, the International Energy Agency said it expects global consumption growth to slow for the rest of the year as trade uncertainty puts pressure on demand.

Crude’s price slump Thursday is the latest move in an extended run of volatile trading. Prices touched a four-year low during the depths of the trade tumult earlier this month, before mounting their biggest four-day gain since October after a detente was announced earlier in the week.

Oil is still down by more than 14% this year, and US producers have said they expect little change in prices before the end of the year. Increased flows from Iran would add to a potential glut later this year after the Organization of the Petroleum Exporting Countries and its allies last month began restoring supplies idled since 2022.

News.Az