Oil Prices Drop 3% as US-Iran Geneva Talks Show Progress

Oil prices drop 3% US-Iran Geneva talks marked a turning point Monday as Brent crude fell $2.67 to settle at $77.90 per barrel, easing global energy tensions.

The decline came after the first round of Pakistan-mediated talks between the United States and Iran in Geneva, Switzerland. Both sides signaled meaningful progress toward a lasting peace deal.

Markets responded positively as the Strait of Hormuz began reopening to normal shipping traffic. The US also announced it would lift sanctions on Iranian oil exports, adding further pressure on crude prices.

Brent crude had been highly volatile in recent sessions. Prices first climbed on uncertainty around the talks, then reversed sharply as hopes for a deal grew stronger.

Traders are watching closely. Any confirmed agreement between Washington and Tehran is seen as reducing the risk of supply disruptions and bringing more Iranian crude back into global markets.

However, analysts warned the situation is still unpredictable. Energy markets are expected to stay sensitive to any breakdown in the talks or delays in removing sanctions.