Oil prices exhibited little movement on Monday in anticipation of discussions between Washington and Tehran. Concerns regarding Iran-U.S. tensions that could potentially disrupt oil flows are providing support for prices, while OPEC+ appears inclined to resume output increases starting in April. Brent crude futures experienced a slight decline of 3 cents, settling at $67.72 a barrel by 0156, following a 23-cent increase at the close on Friday. U.S. West Texas Intermediate crude was priced at $62.86 a barrel, reflecting a decrease of 3 cents. On Monday, there will be no settlement for WTI owing to a holiday.

Last week, both benchmarks experienced weekly declines, with Brent settling down approximately 0.5%, while WTI recorded a loss of 1%. This downward movement in prices was influenced by comments made on Thursday by U.S. President Donald Trump, suggesting that Washington could potentially reach a deal with Iran within the next month. The two nations resumed discussions earlier this month to address their longstanding disagreement regarding Tehran’s nuclear program and to prevent a potential military confrontation. They are scheduled to conduct a second round of negotiations in Geneva on Tuesday. Iran is actively seeking a nuclear agreement with the U.S. that promises economic advantages for both parties, encompassing discussions on energy and mining investments as well as aircraft purchases, according to an Iranian diplomat’s statement on Sunday. “With both sides expected to hold firm on their core red lines, expectations are low that a deal can be reached and this is likely to be the calm before the storm,” said market analyst Tony Sycamore.

The United States has deployed a second aircraft carrier to the area and is bracing for the potential of an extended military operation should negotiations fail, according to information. Iran’s Revolutionary Guards have issued a warning that, should there be strikes on Iranian territory, they may respond against any U.S. military base. Amid heightened tensions between the U.S. and Iran, there has been a notable increase in prices. The Organization of the Petroleum Exporting Countries, along with its allies, collectively referred to as OPEC+, is inclined to recommence output increases starting in April after a three-month pause, in order to accommodate the anticipated peak summer demand, as reported.

The market responded in a measured manner to those reports,” Sycamore stated. “If that geopolitical premium or support wasn’t there, crude oil would likely be trading sub $60 this morning,” he stated, referring to WTI. Global financial market activity is anticipated to be subdued on Monday, as China, South Korea, and Taiwan observe holidays.