Crude Oil Futures Decline Amid Reports Of US–Iran Nuclear Talks

Crude oil futures traded lower on Tuesday following reports that the US and Iran would begin nuclear discussions in Turkey on Friday. The decline in prices reflected market reactions to geopolitical developments that could influence future supply expectations.

Major global benchmarks, including Brent and WTI, registered mild losses during the morning session. Domestic crude oil futures on the Multi Commodity Exchange (MCX) also opened lower, mirroring the global trend.

Global Benchmarks Record Mild Declines

April Brent oil futures were trading at $66.02, down 0.42%, during the Tuesday morning session. This followed market anticipation around diplomatic engagement between Washington and Tehran.

March WTI crude oil futures were recorded at $61.92, down 0.35%, reflecting similar sentiment across the Atlantic. These reductions in prices signalled cautious trading as participants awaited developments from the impending talks.

Domestic Crude Oil Futures Track Global Movement

February crude oil futures on the MCX were trading at ₹5603, lower than the previous close of ₹5625, marking a 0.39% drop. March futures were recorded at ₹5598, compared to the previous close of ₹5607, down 0.16% during early trading.

These movements indicate that domestic markets closely tracked international price patterns influenced by geopolitical news. The trading session suggested a subdued sentiment driven by external cues rather than domestic demand or supply factors.

Diplomatic Developments Between US And Iran

A Reuters report indicated that Iran and the US would resume nuclear talks on Friday in Turkey. The meeting will involve US Special Envoy Steve Witkoff and Iranian Foreign Minister Abbas Araqchi.

According to the report, representatives from regional countries, including Saudi Arabia and Egypt, are also expected to participate in the discussions. The talks aim to revive diplomacy surrounding Iran’s nuclear programme and mitigate concerns regarding escalating regional tensions.

Geopolitical Tensions and Market Sensitivity

Donald Trump stated that with major US warships heading toward Iran, adverse consequences could arise if negotiations fail. This comment further highlighted the sensitivity of oil markets to geopolitical developments.

Iran remains one of the major crude oil producers globally, and any shifts in its geopolitical landscape tend to influence global supply expectations. Market participants monitored these signals closely as they assessed potential outcomes of the upcoming diplomatic engagements.

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Conclusion

Crude oil futures weakened on Tuesday as global markets reacted to news of upcoming nuclear talks between the US and Iran. Both Brent and WTI benchmarks recorded slight declines, while domestic MCX contracts also opened lower.

Geopolitical developments, coupled with currency movements and easing fears of military escalation, contributed to the observed softness in prices. Market participants are expected to closely track diplomatic progress as negotiations unfold later in the week.

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