WTI crude oil futures dipped below $66 per barrel on Monday, easing back from a six-month high as investors assessed the prospects for a US–Iran nuclear agreement, with further talks anticipated later this week. Iran’s foreign minister stated that a diplomatic “win-win” outcome is within reach and confirmed plans to meet US envoy Steve Witkoff in Geneva. At the same time, reports suggested that any potential US military action against Iran would likely be confined to select military or government targets, thereby reducing the risk of widespread supply disruptions.
Market participants remained primarily focused on possible transit risks in the Strait of Hormuz, a critical chokepoint for regional crude exports. Adding to the bearish tone, President Donald Trump is reportedly preparing to lift global tariffs to 15% following the Supreme Court’s rejection of “reciprocal tariffs,” a move that has rekindled concerns about the outlook for oil demand.
