Oil prices edged lower on Monday as investors weighed growing uncertainty in global markets and awaited fresh diplomatic contacts between the US and Iran, wary that any shift in negotiations could alter supply expectations and add to broader economic risks.
International benchmark Brent crude traded at $70.59 per barrel at 9.46 a.m. local time (0646 GMT), down 0.8% from the previous close of $71.22.
US benchmark West Texas Intermediate (WTI) decreased 0.9% to $65.68 per barrel, compared with $66.30 in the previous session.
Markets are closely watching planned talks between Washington and Tehran in Geneva on Feb. 26, with traders cautious that any progress, or setback, could quickly shift expectations for oil supply.
Oman's Foreign Minister Badr Albusaidi confirmed Sunday that the two sides will meet in Geneva on Thursday.
"Pleased to confirm US-Iran negotiations are now set for Geneva this Thursday, with a positive push to go the extra mile towards finalizing the deal," Albusaidi wrote on US social media company X.
Washington is ready to hold another round of negotiations with Tehran in Geneva only if Iran provides a detailed nuclear proposal within the next two days, Axios reported on Sunday, citing a senior US official.
Iranian Foreign Minister Abbas Araghchi told CBS that the proposal is still being finalized, with both sides working on elements that will "accommodate both sides' concerns and trusts." He said the Iranian leadership has not yet signed off, but he is confident the sides will make progress when they meet.
On the economic front, weaker-than-expected US growth data and signs of sticky inflation have clouded the outlook. Although markets still expect the Federal Reserve (Fed) to begin cutting interest rates in June, confidence has eased somewhat in recent weeks.
Lower interest rates could weaken the dollar and support commodity prices, but investors remain cautious as geopolitical and economic risks linger.
Adding to uncertainty, US President Donald Trump on Saturday pledged to raise a previously announced 10% global tariff to 15%, despite a Supreme Court ruling against earlier tariff measures.
"Based on a thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision on Tariffs issued yesterday ... by the United States Supreme Court," the global tariff will be raised to 15% "effective immediately," Trump wrote on his Truth Social platform.
His announcement followed remarks on Friday in which he criticized the court's "deeply disappointing" decision to invalidate the "emergency" tariffs he had implemented worldwide.
Analysts say the combination of trade uncertainty, geopolitical risk and concerns over global growth is keeping oil prices under pressure, with volatility likely to persist in the near term.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
