Oil prices dropped this morning after news that Iran is reportedly on the brink of reaching a deal with six world powers that would end sanctions on the Islamic Republic, and allow more Iranian oil into the world markets.
Six world powers have been in talks with Tehran for months, in order to reach a nuclear deal and lift sanctions against the country. The sanctions have seriously affected the Iranian economy, which can recover only with greatly increased oil and gas exports.
A senior Iranian negotiator said a nuclear deal would be completed but cautioned that there was work to be done and he could not promise the talks would finish on Monday or Tuesday.
“I cannot promise whether the remaining issues can be resolved tonight or tomorrow night,” Iran’s Tasnim news agency quoted Deputy Foreign Minister Abbas Araqchi as saying.
Brent crude for August fell $1.89 to a low of $56.84 a barrel before rallying back to around $57.30 by 4.40 a.m. EDT. U.S. light crude, also known as West Texas Intermediate (WTI), was down $1.15 at $51.59 a barrel.
A positive outcome from the Greek talks helped temper the early losses. Brent Crude is currently trading at $58.73, and WTI Crude at $52.74.