Oil prices fell Tuesday after Iran’s foreign minister said progress was made during nuclear talks with the U.S., fueling hopes that negotiations could prevent another conflict in the Middle East.
U.S. crude oil fell 61 cents, or 0.97%, to $62.28 per barrel by 10:26 a.m. ET. Global benchmark Brent was down $1.42, or 2.07%, to $67.23.
Iran and the U.S. reached a “general agreement” Tuesday on guiding principles during talks in Geneva, Switzerland, Foreign Minister Abbas Araghchi said, according to the semi-official Tansim news agency. Araghchi described talks with th U.S. as serious and constructive.
Tensions remain high between Iran and the U.S. President Donald Trump has threatened strikes on the Islamic Republic if it does not cut a deal over its nuclear program.
Iran conducted war games Tuesday in the Strait of Hormuz, a trade chokepoint that is vital for international crude supplies. Traffic through the strait was suspended for several hours as the Islamic Revolution Guard Corps (IRCG) held naval exercises, according to Iran’s semi-official Tasnim news agency.
About one-third of all waterborne crude oil exports pass through the strait, according to data from consulting firm Kpler.
The IRCG is prepared to close the Strait of Hormuz if ordered to do so, Rear Admiral Alireza Tangsiri said, according to Tansim news agency.