Oil prices declined on Monday as easing geopolitical tensions between the U.S. and Iran calmed somewhat fears of supply disruptions.
Brent crude dropped $1.38 to $66.58, while WTI decreased $1.40 to $63.28, each down more than 2%.
After weekend talks, Iran’s foreign minister said both nations had agreed to begin drafting a framework for a nuclear deal. A U.S. official confirmed “very good progress.”
This came just days after Washington imposed fresh U.S. sanctions on Iran, including penalties targeting a Chinese teapot refinery for processing Iranian oil - a sign of pressure on Tehran amid the negotiations.
Oil prices had rallied nearly 5% last week, driven by Iranian supply concerns and hopes for a U.S.-EU trade agreement.
Separately, Russia and Ukraine accused each other of violating a one-day Easter ceasefire declared by the Russian leader Vladimir Putin, with no indication it would be extended.