Oil slides 3% on expectations for US-Iran nuclear deal
LONDON: Oil prices fell by about $2 on Thursday on expectations for a U.S.-Iran nuclear deal that could result in sanctions easing, while a surprise build in U.S. crude oil inventories last week heightened investor concerns about oversupply.
Brent crude futures were down $1.99, or 3%, to $64.10 a barrel at 0806 GMT. U.S. West Texas Intermediate (WTI) crude futures were down $2.05, or 3.3%, to $61.10.
U.S. President Donald Trump said on Thursday that the United States was getting very close to securing a nuclear deal with Iran, and Tehran had 'sort of' agreed to the terms.
This came after an Iranian official told NBC News in an interview published on Wednesday that Iran was willing to agree to a deal with the U.S. in exchange for the lifting of economic sanctions.
Oil falls after US crude inventories rise
'Chased down by the crude build in the EIA Inventory Report, the move is accelerated by what appears to be a cooling of animosity in the US/Iran nuclear negotiations,' PVM Oil analyst John Evans said of oil prices.
Washington issued sanctions on Wednesday to target Iranian efforts to domestically manufacture components for ballistic missiles, the U.S. Treasury Department said, following Tuesday's sanctions on some 20 companies in a network that it said has long sent Iranian oil to China.
The sanctions came after a fourth round of U.S.-Iran talks in Oman aimed at addressing disputes over Iran's nuclear programme.
Data from the U.S. Energy Information Administration on Wednesday showed crude stockpiles rose by 3.5 million barrels to 441.8 million barrels last week, compared with analysts' expectations in a Reuters poll for a 1.1 million-barrel draw.
Meanwhile, the International Energy Agency lifted its oil demand growth forecast in 2025 to 740,000 barrels per day, up 20,000 bpd from the previous report, citing higher economic growth forecasts and lower oil prices supporting consumption.
The Organization of the Petroleum Exporting Countries and allied producers, known as OPEC+, has been increasing supply, although OPEC on Wednesday trimmed its forecast for growth in oil supply from the U.S. and other producers outside the wider OPEC+ group this year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Buying rally continues, KSE-100 settles with over 500 points gain
A day after gaining over 6,000 points, the buying rally continued at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index settling with a gain of over 500 points on Wednesday. Positive momentum persisted throughout the trading session, pushing the KSE-100 Index hit an intra-day high of 123,256.55. At close, the benchmark index settled at 122,761.64 level, an increase of 515.01 or 0.42%. On Tuesday, the PSX surged to a record high, driven largely by investor optimism following a ceasefire agreement between Iran and Israel. The benchmark KSE-100 Index rose significantly 6,079 points or 5.23%, settling at record level of 122,246 points. This marked the second-highest single-day increase in terms of points. Internationally, Asian stocks stabilised on Wednesday as crude oil hovered near multi-week lows, as a ceasefire between Israel and Iran buoyed sentiment, even as hostilities threatened to flare up again. The US dollar wallowed close to an almost four-year trough versus the euro with two-year U.S. Treasury yields sagging to 1 1/2-month lows as lower oil prices reduced the risk to bonds from an inflation shock. The shaky truce has so far held, although Israel says it will respond forcefully to Iranian missile strikes that came after US President Donald Trump had announced an end to the hostilities. In addition, US airstrikes did not destroy Iran's nuclear capability and only set it back by a few months, according to a preliminary U.S. intelligence assessment, contradicting Trump's earlier comments that Iran's nuclear programme had been 'obliterated'. Japan's Nikkei and Australia's stock benchmark were flat, while Taiwan's index gained 1%. Hong Kong's Hang Seng rose 0.6% and mainland Chinese blue chips eased 0.1%. US stock futures were little changed. An MSCI index of global stocks held steady after climbing to a record high overnight.
Business Recorder
2 hours ago
- Business Recorder
Oil rises 2% as investors assess Iran-Israel ceasefire, Fed outlook
Oil prices climbed 2% on Wednesday as investors assessed the stability of a ceasefire between Iran and Israel, while support also came from market expectations that interest rate cuts could happen soon in the United States, the world's largest economy. Brent crude futures rose $1.31, or 2%, to $68.45 a barrel at 0750 GMT, while US West Texas Intermediate (WTI) crude gained $1.24 cents, or 1.9%, to $65.61. Brent settled on Tuesday at its lowest since June 10 and WTI since June 5, both before Israel launched a surprise attack on key Iranian military and nuclear facilities on June 13. Prices had rallied to five-month highs after the US attacked Iran's nuclear facilities over the weekend. 'Geopolitical risk premiums have been reduced and will take a backseat for now…Fed Chair Powell's first testimony to Congress (yesterday) has hinted at a slight chance of bringing forward the first rate cut of 2025 to July…which should offer some form of floor on oil prices from the demand side,' said OANDA senior market analyst Kelvin Wong. Technical factors drove price increases during the session, he added. Lower interest rates typically spur economic growth and demand for oil. A slew of US macroeconomic data released overnight including on consumer confidence showed possibly weaker than expected economic growth in the world's largest oil consumer, bolstering expectations of Federal Reserve rate cuts this year. Futures point to nearly 60 basis points worth of easing by December. On the geopolitical front, a preliminary US intelligence assessment said US airstrikes did not destroy Iran's nuclear capability and only set it back by a few months, as a shaky ceasefire brokered by US President Donald Trump took hold between Iran and Israel. Earlier on Tuesday, both Iran and Israel signalled that the air war between the two nations had ended, at least for now, after Trump publicly scolded them for violating a ceasefire. Oil prices drop 6pc As the two countries lifted civilian restrictions after 12 days of war - which the US joined with an attack on Iran's uranium-enrichment facilities - each sought to claim victory. 'While concerns regarding Middle Eastern supply have diminished for now, they have not entirely disappeared, and there remains a stronger demand for immediate supply,' said ING analysts in a client note. Oil prices will likely consolidate at around $65-70 per barrel levels as traders look to more US macroeconomic data this week and the Fed's rate decision, said independent market analyst Tina Teng. Investors were also waiting on US government data on domestic crude and fuel stockpiles due on Wednesday. Industry data showed US crude inventories fell by 4.23 million barrels in the week ended June 20, market sources said, citing American Petroleum Institute figures on Tuesday.
Express Tribune
3 hours ago
- Express Tribune
Iran parliament approves bill to halt cooperation with IAEA
Listen to article Iran's parliament approved a bill on Wednesday to suspend cooperation with the UN nuclear watchdog International Atomic Energy Agency (IAEA), state-affiliated news outlet Nournews reported. Iran parliament votes to suspend cooperation with International Atomic Energy Agency Follow Press TV on Telegram: — Press TV 🔻 (@PressTV) June 25, 2025 The move, which needs the final approval of Iran's Supreme National Security Council to be enforced according to Nournews, follows an air war with Israel in which its longtime enemy said it wanted to prevent Tehran developing a nuclear weapon. Read: Iran declares end to 12-day 'Israel-imposed' war Parliament Speaker Mohammad Baqer Qalibaf was quoted by state media as also saying Iran would accelerate its civilian nuclear programme. Tehran denies seeking nuclear weapons and says a resolution adopted this month by the IAEA declaring Iran in breach of its non-proliferation obligations paved the way for Israel's attacks. The parliament speaker was quoted as saying the IAEA had refused even to appear to condemn the attack on Iran's nuclear facilities and "has put its international credibility up for sale". Read: US Intelligence report contradicts Trump's claim on Iran nuclear strikes success He said that "for this reason, the Atomic Energy Organisation of Iran will suspend its cooperation with the Agency until the security of the nuclear facilities is guaranteed, and move at a faster pace with the country's peaceful nuclear programme". Earlier this week, parliament's national security committee approved the bill's general outline and the committee's spokesperson, Ebrahim Rezaei, said the bill would suspend the installation of surveillance cameras, inspections and filing of reports to the IAEA. Following the Israeli attacks on its nuclear sites, and US bombing of underground Iranian nuclear facilities at the weekend, the Iranian government also faces calls to limit the country's commitments to the nuclear non-proliferation regime. In an interview with Qatar's Al-Araby Al-Jadeed on Tuesday, Foreign Minister Abbas Araqchi said: "I think that our view on our nuclear programme and the non-proliferation regime will witness changes, but it is not possible to say in what direction".
