There is a growing possibility that the US and Iran are moving closer to a deal that could lead to the lifting of sanctions on Iran. US Secretary of State Antony Blinken said the best way to ensure that Iran does not become a nuclear power is to reach an agreement with Tehran. However, a Reuters report revealed that US special envoy to Iran Robert Malley said he was not sure a deal would go through because according to him, there are issues that have not been resolved for a long time, and even with renewed negotiations, it is clear that they will again be difficult to resolve. But according to senior adviser to the supreme ruler of Iran, Kamal Kharrazi, a deal is inevitable, and everything will depend on the political will of the United States.
On a different note, crude oil prices began the current week with a decrease in response to the introduction of quarantine in Shanghai due to the large number of cases of coronavirus infection. That raised concerns about the loss of oil demand from the world's largest importer.
To date, gas shortages in response to Western sanctions against Moscow have kept oil above $100 and will likely continue to do so in the near future unless the sanctions regime changes. According to the Wall Street Journal, the current effects are just the beginning.
The quarantine in Shanghai is definitely bad news for oil.
