Oil prices fall amid US-Iran talks and potential de-escalation

Oil prices have dropped to three-month lows as markets react to a potential preliminary agreement between the United States and Iran aimed at ending regional hostilities. U.S. President Donald Trump indicated a memorandum of understanding has been signed to restore navigation in the Strait of Hormuz, though full details remain undisclosed. The Iranian Foreign Minister, Abbas Araghchi, confirmed that a new round of talks is scheduled for Friday in Switzerland to finalize an interim agreement. The deal is expected to allow Iran to resume oil and fuel exports provided it adheres to conditions such as non-interference with maritime traffic and a pledge against nuclear weapon acquisition. Reports suggest Iran’s Islamic Revolutionary Guard Corps is also involved in negotiations regarding a 14-point peace plan. Meanwhile, Goldman Sachs has revised its oil price forecasts, lowering its Q4 Brent estimate from $90 to $80 per barrel. Iran warned that any Israeli military action in Lebanon would constitute a violation of the interim terms. Markets responded positively to these developments, with global stocks rising while crude oil futures saw significant declines.