Oil prices moved lower by more than 1% on Monday as investors assessed the impact of renewed U.S. trade tensions alongside expectations for a fresh round of nuclear negotiations between Washington and Tehran, which could ease geopolitical risks.
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 said it will stop collecting tariffs introduced under the International Emergency Economic Powers Act starting at 12:01 a.m. EST (05:01 GMT) on Tuesday. However, President Donald Trump announced Saturday that a temporary tariff on imports from all countries would be raised from 10% to 15% — the highest level permitted under the statute — after the Supreme Court invalidated his earlier tariff programme.
“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 diplomatic developments after Oman’s Foreign Minister Badr Albusaidi confirmed that Iran and the United States will meet in Geneva on Thursday for a third round of nuclear negotiations. Concerns over a potential military escalation had driven Brent and WTI prices more than 5% higher last week.
A senior Iranian official told Reuters that Tehran is willing to consider concessions on its nuclear programme in exchange for sanctions relief and formal 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 oversupplied in 2026, assuming Iranian exports are not disrupted. The bank nevertheless lifted its fourth-quarter 2026 forecasts by $6, projecting Brent at $60 per barrel and WTI at $56, citing lower inventories across OECD economies.
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