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Oil Prices Drop After Trump’s Comments on Iran Deal

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The White House Watch newsletter offers insights into what a second Trump term could mean for Washington, business, and global affairs.

On Thursday, oil prices fell by over 3 percent following remarks by Donald Trump indicating progress in indirect negotiations with Iran to establish a deal limiting the country’s extensive nuclear program.

Brent crude prices, a global benchmark, dropped by up to 3.7 percent to $63.68 before slightly recovering to around $63.98 a barrel. This movement followed the US President’s statement in Doha, the second stop in his Gulf tour, that the US was engaged in “serious negotiations” with Iran.

West Texas Intermediate, the US benchmark, saw prices decrease by 3.2 percent to $61.11 a barrel.

Trump’s comments were made after Steve Witkoff, his envoy, conducted a fourth round of talks with Iranian Foreign Minister Abbas Araghchi on Sunday prior to Trump’s regional visit.

Iran’s Foreign Ministry described the discussions as “difficult but useful.”

Experts believe that reaching a mutually acceptable agreement will be a prolonged and intricate task due to the deep-seated mistrust between the adversaries and the advancements in Iran’s nuclear program.

US officials have sent mixed signals regarding their demands from Iran. However, Witkoff emphasized the Trump administration’s aim for the complete dismantlement of Tehran’s nuclear capabilities in his latest comments to Breitbart, a right-wing US news outlet. He stated that Iran must dismantle its three main nuclear facilities and warned that without progress in the talks on Sunday, negotiations would cease, necessitating a different approach.

Tehran regards the dismantling as a red line, asserting its right to enrich uranium domestically as a non-proliferation treaty signatory.

While Trump has expressed a desire for a diplomatic resolution, he has also threatened military action should diplomacy fail, reinstating sanctions on Iran as part of a “maximum pressure” campaign.

Following the most recent discussions in Oman, Araghchi affirmed Iran’s uncompromising stance on uranium enrichment but acknowledged the potential agreement on limited concessions regarding enrichment dimensions, volume, and levels to foster confidence.

“The issue of enrichment is non-negotiable, as is the removal of sanctions,” he stated.

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