Oil Prices Drop 2% on Iran Deal Hopes

Oil prices fell for a second consecutive day on Thursday, following remarks by U.S. President Donald Trump that negotiations with Iran over its nuclear program were making progress. The prospect of a deal between the two nations raises the possibility of increased oil supply in a market already grappling with oversupply concerns.

Brent crude oil prices dropped by more than 2%, settling below 65 dollars per barrel, while U.S. oil futures also declined. Analysts noted that the lifting of all sanctions on Iran could result in a significant influx of oil into the global market, further weakening market sentiment already strained by the faster-than-expected production increases from OPEC+ and the impact of U.S. trade negotiations on demand outlook.

“Trump is pushing for a deal with Iran to keep oil prices low,” said Vikas Dwivedi, global oil and gas strategist. “The current dialogue suggests a potential agreement as early as this year.”

Dwivedi estimated that a deal could add 200,000 to 300,000 barrels per day to global oil supply. He added that Iran's oil exports have already been increasing, reaching approximately 1.7 million barrels per day in April.