Oil Prices Fall as Iran Tensions Ease, India Deal

International benchmark Brent crude traded at $65.78 per barrel, down 0.7% from its previous close of $66.24. US benchmark WTI declined 0.6% to $61.62 per barrel, compared with $62.02 in the prior session.

Markets reacted to renewed diplomatic activity between Washington and Tehran, with US President Donald Trump confirming ongoing talks despite a cautionary tone about potential failures. US special envoy Steve Witkoff and Iranian Foreign Minister Abbas Araghchi are scheduled for talks in Istanbul, as reported by Axios.

Iranian President Masoud Pezeshkian instructed his foreign minister to pursue "fair and equitable negotiations" with the US. Additionally, Trump announced a new trade deal with India, lowering US reciprocal tariffs from 25% to 18%.

As part of this agreement, India's Prime Minister Modi agreed to cease buying Russian oil and increase purchases from the United States and potentially Venezuela. Eight OPEC+ members, including Saudi Arabia and Russia, reiterated their commitment to market stability, confirming a halt to production increases in March due to seasonal factors.

They noted that 1.65 million barrels per day of output could be gradually restored based on market conditions, emphasizing full compliance with voluntary production cuts. This decision to keep production steady adds downward pressure on oil prices.