Oil prices steady as Iran sales waiver points towards peace talks progress

Oil prices steadied after declining over 3% in the prior session post early progress in US-Iran peace talks, which included the US waiver permitting some sales from Iran.

Brent crude was near $78 a barrel while West Texas Intermediate was over $74 a barrel.

The 60-day license permits the sale of some Iranian oil and petroleum products, citing “productive talks” in Switzerland, offering Tehran a crucial economic lifeline.

US and Iranian officials both cited progress in the first round of talks toward a lasting agreement to end the conflict that started at the end of February, but some discrepancies have emerged. Vice President JD Vance said Iran agreed to allow nuclear inspectors into the country, a claim disputed by Tehran.

The waiver permits almost anyone to purchase and pay for Iranian oil, including US refineries, although some might be unwilling to take on the risk. Supply from the Persian Gulf has ticked up recently, with producers such as Kuwait and the United Arab Emirates finding workarounds to get energy out. Iran has also shipped more more than 30 million barrels over the past week.

There’s expected to be protracted wrangling on Iran’s nuclear capabilities as talks continue, along with the status of a ceasefire in Lebanon between Israel and Hezbollah and the safe reopening of the Strait of Hormuz. The near-closure of the waterway choked off energy supplies and upended markets.

With inputs from Bloomberg