Oil prices declined by more than 1% on Monday as markets focused on upcoming U.S.–Iran nuclear negotiations that could ease geopolitical tensions, while renewed uncertainty around U.S. trade tariffs raised concerns about global economic growth and energy demand.
Brent crude futures fell 73 cents, or 1%, to $71.03 per barrel by 08:49 GMT, while U.S. West Texas Intermediate crude dropped 75 cents, or 1.1%, to $65.73 per barrel.
“With the next, and possibly last, round of the Iranian nuclear talks not until Thursday, focus is on the U.S. Supreme Court’s decision to strike down import tariffs and the subsequent reaction from the government,” said Tamas Varga, associate analyst at PVM Oil.
The U.S. Customs and Border Protection agency announced it would stop collecting tariffs imposed under the International Emergency Economic Powers Act starting at 12:01 a.m. EST (05:01 GMT) on Tuesday. However, President Donald Trump said Saturday he would increase a temporary tariff on U.S. imports from all countries to 15%, up from 10%, following the Supreme Court’s decision to invalidate his earlier tariff programme. The new rate represents the maximum permitted under the law.
“The tariff news over the weekend has resulted in some risk aversion flows this morning, which can be viewed in the price of gold and U.S. equity futures and this is weighing on the crude oil price,” said IG Markets analyst Tony Sycamore.
Attention also turned to diplomacy, with Oman’s Foreign Minister Badr Albusaidi confirming Sunday that Iran and the United States will hold a third round of nuclear negotiations in Geneva on Thursday. Concerns over a potential military escalation had pushed both Brent and WTI prices more than 5% higher last week.
A senior Iranian official told Reuters that Tehran is prepared to consider concessions regarding its nuclear programme in exchange for sanctions relief and recognition of its right to enrich uranium.
“This morning’s weakness is a defensive move, and needless to say, with the uncertainty surrounding a U.S. military intervention in Iran, the ongoing Russian-Ukrainian war and now the U.S. Supreme Court’s decision, oil price direction is not (clear), but volatility is guaranteed,” Varga added.
Goldman Sachs said it expects the global oil market to remain in surplus in 2026, assuming Iranian supply is not disrupted. The bank nonetheless raised its fourth-quarter 2026 price forecasts by $6, projecting Brent at $60 per barrel and WTI at $56, citing lower oil inventories across OECD countries.