Oil prices fell more than 2% on Monday as signs of progress in U.S.-Iran nuclear talks raised the prospect of Iranian crude returning to global markets, while concerns over economic headwinds from tariffs weighed on demand outlooks.
Brent crude dropped $1.70, or 2.5%, to settle at $66.26 a barrel, and U.S. West Texas Intermediate (WTI) fell $1.60, or 2.5%, to $63.08. Both contracts had rallied last Thursday—Brent by 3.2% and WTI by 3.5%—before the Easter holiday break.
Iran’s foreign minister said both sides had agreed to begin drafting a framework for a possible nuclear deal, a move a U.S. official called “very good progress.” Analysts noted the potential return of Iranian supply was beginning to pressure prices.
Trading volumes were lower due to the holiday, which may have amplified the price drop.
Markets were also pressured by broader economic concerns. U.S. President Donald Trump again criticized the Federal Reserve, urging immediate rate cuts to avoid a slowdown. Equities dropped, and gold hit new highs amid risk-off sentiment.
Meanwhile, OPEC+ is set to increase output by 411,000 barrels per day in May, though overproducing countries are expected to trim volumes to stay in line with quotas.