APA Corporation’s Forties Alpha oil platform in the North Sea.
Courtesy of: APA Corporation
Brent oil futures fell on Monday after mediators Qatar and Pakistan said U.S. and Iranian officials had agreed on a road map aimed at reaching a final deal within 60 days.
In a joint statement following talks at the Swiss resort of Bürgenstock, the mediators said the parties would continue technical negotiations throughout the week and establish a high-level committee to oversee the mediation process.
The development comes after U.S. President Donald Trump threatened renewed military action against Iran, raising concerns about the durability of a fragile interim peace deal reached last week.
Trump made the statement on Sunday as his Vice President JD Vance met with Iranian officials in Switzerland. The meeting was overshadowed by Tehran’s announcement that it would once again close the Strait of Hormuz, a key route for global oil shipments.
International reference Brent crude Futures for August rose in early Asian trading before falling back and were trading down 1.09% at $79.69 a barrel as of 3:55 a.m. ET. WE West Texas Intermediate Futures For July, the 3% jump recorded in previous trading fell 0.38% to $76.89 per barrel.
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The talks in the Swiss resort town of Bürgenstock marked the first negotiations since Washington and Tehran signed a memorandum of understanding last week to end their conflict and extend a tenuous ceasefire for at least 60 days.
The agreement calls for the reopening of the Strait of Hormuz and a cessation of hostilities in the region, including in Lebanon. Iran, however, accused Washington of failing to secure a ceasefire there and said the latest negotiations would focus only on the implementation of the memorandum rather than broader issues such as its nuclear program.
According to Quantum Strategy’s David Roche, Middle East oil supplies are currently close to pre-war levels, once crude stored and on board tankers is included. However, it warned in a report released Monday that the apparent abundance reflects inventory liquidation rather than a resumption of production, leaving the market vulnerable once those stocks are exhausted.
As oil prices have rebounded following renewed tensions in the Middle East, Goldman Sachs noted that sustained supply shocks could ultimately accelerate the transition to electric vehicles, eroding long-term crude demand and increasing the risks of lower oil prices.
