Brent loses momentum as Iran commits to nuclear treaty

The front-month ICE Brent contract has moved $0.35/bbl lower on the day, to trade at $68.28/bbl at 09.00 GMT.

IMAGE: Oil storage tanks. Getty Images

Upward pressure:

The US has announced fresh sanctions on Iranian oil exports, once again reiterating the Trump administration’s stance on driving the OPEC nation’s oil and petroleum products flow to zero. This news has supported Brent’s price today.

The sanctions include oil companies and Iran’s alleged shadow fleet vessels that help export crude oil produced in the oil-rich country.

“Crippling Iran’s oil industry, its top source of revenue, has been a key goal of the Trump administration’s 'maximum pressure' strategy,” said ANZ Bank’s senior commodity strategist Daniel Hynes.

Notably, the effectiveness of these sanctions has been questioned, as China continues to buy Iranian oil, Hynes added.

Downward pressure:

Trading activity is subdued today, as US markets are closed for the Independence Day holiday.

Brent’s price has edged lower after Iran reaffirmed its commitment to nuclear non-proliferation treaty, Reuters reports.

“Tensions surrounding the Iran nuclear issue appeared to ease,” remarked VANDA Insights’ Vandana Hari.

Tehran’s commitment to nuclear non-proliferation comes as it prepares to restart nuclear talks with Washington, Axios reports. US Middle East envoy, Steven Witkoff, plans to meet with Iran’s foreign minister, Abbas Araghchi, in Oslo next week, the report adds.

“Crude oil prices fell amid reports of US-Iran nuclear talks,” Hynes said.

By Aparupa Mazumder

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