Oil prices dropped sharply on Thursday after President Donald Trump announced progress toward a nuclear agreement with Iran. Speaking from Doha during his Middle East tour, Trump said the U.S. is close to finalizing a deal that could bring “long-term peace” with Tehran.
Trump’s remarks triggered a market reaction, with Brent crude futures down 3.2% to $63.99 per barrel. U.S. West Texas Intermediate (WTI) futures also fell 3.4% to $60.98. The price dip followed renewed optimism over easing U.S.-Iran tensions.
Iran’s readiness to sign a deal, reported by NBC News, added weight to Trump’s statement. A senior advisor to Iran’s Supreme Leader confirmed the country would consider a deal if sanctions are lifted. Such an agreement could reshape the global oil landscape.
Analysts say the potential deal is already impacting crude prices. Tamas Varga, an energy expert at PVM brokerage, noted the deal’s announcement is the main reason behind Thursday’s market weakness. He explained that if Iran complies by halting weapons-grade uranium enrichment, it could add up to one million barrels of oil per day to global supply.
While this could depress prices, other forces may limit the impact. OPEC+ recently boosted production and may slow further increases if Iranian exports resume. The group, led by Saudi Arabia, approved an output hike of 411,000 barrels per day for June, repeating its May production increase.
OPEC+ members have surprised analysts by raising supply steadily in recent months. However, the alliance may adjust again if Iran floods the market with additional barrels.
Traders remain cautious. The deal’s success depends on whether both sides honor terms and whether enforcement mechanisms are effective. Yet, markets are already reacting to the possibility of more Iranian oil hitting the global market.
The U.S.-Iran negotiations mark a pivotal moment. As Trump pushes for regional peace and energy stability, oil markets are watching closely.
For more business updates, visit DC Brief.
