Crude oil futures dipped on Monday after senior US and Iranian delegations successfully concluded an intensive opening round of negotiations in Switzerland.
Front-month West Texas Intermediate crude futures dropped by 1.9% to $75.15 per barrel, while Brent futures slumped 2.8% to $78.29/bbl.
Facilitated by diplomatic mediation from Qatar and Pakistan, the Switzerland summit established a formal committee and a definitive 60-day roadmap aimed at securing a permanent peace agreement to defuse the Middle East crisis.
The immediate bearish pressure on futures was driven by concrete commercial concessions confirmed by Iranian Foreign Minister Seyed Abbas Araghchi on the social media platform X.
Araghchi stated that under the new framework, Tehran secured critical waivers authorizing the immediate resumption of its sovereign oil and petrochemical exports, alongside a complete dismantling of the US maritime blockade on Iranian ports and the phased release of frozen financial assets.
Vibhuti Garg, Director South Asia, at Institute for Energy Economics and Financial Analysis said "while the market remains vulnerable, the risk of an acute and prolonged supply shortage has diminished."
"However, supply-side pressures are unlikely to disappear immediately. Disruptions to production, refining, and shipping routes in parts of the region have affected market sentiment and supply chains, and it will take time for markets to fully adjust," Garg added.