Oil prices fell on Thursday as traders reacted to geopolitical developments ahead of U.S.-Iran nuclear talks scheduled for Sunday. The decline followed strong gains in the previous session.
Brent crude dropped $1.02, or 1.5%, to $68.75 a barrel by 1253 GMT. U.S. West Texas Intermediate crude slipped $1.05, also 1.5%, to $67.10. Both benchmarks had risen more than 4% on Wednesday to reach their highest levels since early April.
The pullback came after the U.S. announced it would move some personnel out of the Middle East. President Donald Trump said the region “could be a dangerous place” and repeated that the U.S. would not let Iran develop a nuclear weapon. Iran maintains its nuclear program is peaceful.
The U.S. is preparing for a partial evacuation of its embassy in Iraq and has authorized the departure of military dependents from bases in the region due to increased security risks. Iraq, the second-largest oil producer in OPEC after Saudi Arabia, said energy operations remain normal.
Britain’s maritime agency has warned ships to proceed with caution in the Gulf, the Gulf of Oman and the Strait of Hormuz, where military activity could rise. Iran has threatened to strike U.S. bases if talks fail. Trump has said military action is an option if a deal is not reached.
The U.N. nuclear watchdog on Thursday said Iran was in breach of its non-proliferation commitments. This was the first such finding in nearly 20 years and could lead to the issue being sent to the U.N. Security Council.
U.S. envoy Steve Witkoff is scheduled to meet Iran’s foreign minister Abbas Araghchi in Oman to discuss the U.S. proposal for a new agreement.
