Published by Global Banking & Finance Review®
Posted on April 20, 2025
3 min readLast updated: January 24, 2026
Add as preferred source on GoogleOil prices fell over 2% due to US-Iran talks progress and demand fears. Brent and WTI crude futures saw significant declines amid economic concerns.
By Stephanie Kelly
NEW YORK (Reuters) -Oil prices fell more than 2% on Monday on signs of progress in talks between the U.S. and Iran, while investors remained concerned about economic headwinds from tariffs that could curb demand for fuel.
Brent crude futures were down $1.70, or 2.5%, at $66.26 a barrel, after closing up 3.2% on Thursday. Thursday was the last settlement day last week because of the Good Friday holiday.
U.S. West Texas Intermediate crude fell $1.60, or 2.5%, to $63.08 a barrel, after settling up 3.54% in the previous session.
"The U.S.-Iran talks seem relatively positive, which allows for people to start thinking about the possibility of a solution," said Harry Tchilinguirian, group head of research at Onyx Capital Group.
"The immediate implication would be that Iranian crude would not be off the market."
Markets also have lower liquidity due to the Easter holiday, which can exacerbate price moves, he added.
In the talks, the U.S. and Iran agreed to begin drawing up a framework for a potential nuclear deal, Iran's foreign minister said, after discussions that a U.S. official described as yielding "very good progress."
The progress follows further sanctions by the U.S. last week against a Chinese independent oil refinery that it alleges processed Iranian crude, ramping up pressure on Tehran.
Markets also came under stress on Monday after U.S. President Donald Trump repeated criticisms about the Federal Reserve. The U.S. economy could slow down unless interest rates are lowered immediately, Trump said on Monday.
Gold prices rose to another record, with jitters rippling into energy markets due to concerns about demand, according to analysts.
Wall Street's main indexes lost more than 1% each. [.N]
"The risk-off feel in the market because of stocks is driving us lower today," said Phil Flynn, senior analyst with Price Futures Group.
Meanwhile, OPEC+, the group of major producers including the Organization of the Petroleum Exporting Countries and allies such as Russia, is still expected to increase output by 411,000 barrels per day starting in May.
However, some of that increase may be offset by cuts from countries that have been exceeding their quotas.
A Reuters poll on April 17 showed investors believe the tariff policy will trigger a significant slowdown in the U.S. economy this year and next, with the median probability of recession in the next 12 months approaching 50%. The U.S. is the world's biggest oil consumer.
Investors are watching for several U.S. data releases this week, including April flash manufacturing and services PMI, for direction on the economy.
(Reporting by Stephanie Kelly in New York; additional reporting by Anna Hirtenstein in London, Florence Tan and Trixie Yap in Singapore; Editing by Kirsten Donovan, Jan Harvey and Matthew Lewis)
The article discusses the decline in oil prices due to progress in US-Iran talks and concerns over fuel demand.
Progress in US-Iran talks led to speculation about increased Iranian oil supply, contributing to a drop in oil prices.
Economic headwinds from tariffs and potential US economic slowdown are raising concerns about fuel demand.
Explore more articles in the Headlines category
