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 56 cents, or 0.89%, to close at $62.33 per barrel. Global benchmark Brent lost $1.23, or 1.79%, to settle at $67.42.
Iran and the U.S. reached a “general agreement” on Tuesday on guiding principles during talks in Geneva, Foreign Minister Abbas Araghchi said, according to the semiofficial Tansim news agency. Araghchi described talks with the 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 choke point that is vital for international crude supplies. Traffic through the strait was suspended for several hours as Iran’s Revolutionary Guard held naval exercises, according to the Tasnim news agency.
About one-third of all waterborne crude oil exports pass through the strait, according to data from consulting firm Kpler.
The Guard is prepared to close the Strait of Hormuz if ordered to do so, Rear Adm. Alireza Tangsiri said, according to the Tansim news agency.