Oil slides on Iran nuclear talks, fresh US tariff uncertainty

Oil prices slid 1% on Monday with the U.S. and Iran headed for a third round of nuclear talks, ‌easing concerns about ⁠a ⁠potential conflict, while President Donald Trump created uncertainty for global growth and fuel demand with a new round of tariff hikes.

Brent crude futures slid 75 cents, or 1.05%, to $71.01 a barrel by 0055 GMT while U.S. West Texas Intermediate crude futures were at $65.74 a barrel, down 74 cents, or 1.11%.

Trump said on Saturday he would raise a temporary tariff from 10% to 15% on U.S. ⁠imports from ‌all countries, the maximum level allowed under the law, after the U.S. Supreme Court struck down his previous 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," IG Markets analyst Tony Sycamore said.

The tariff decision offset growing concerns of a military conflict between the U.S. and Iran, which pushed Brent and WTI prices up more than 5% last week.

Iran and the U.S. will ‌hold a third round of nuclear talks on Thursday in Geneva, Oman's Foreign Minister Badr Albusaidi said on Sunday.

Sycamore said the announcement supported his view that the U.S. ⁠and Iran are currently engaged in a diplomatic game of cat and mouse.

"I don't believe that the U.S. wants to attack Iran, given the risks it brings in terms of regional destabilisation and, closer to home, voter discontent ahead of the November midterms," Sycamore said.

Iran has indicated it is prepared to make concessions on its nuclear programme in return for the lifting of sanctions and recognition of its right to enrich uranium, a senior Iranian official told Reuters.