Global oil prices edged higher on Monday as geopolitical tensions intensified with ongoing U.S.–Iran nuclear negotiations and fresh concerns over crude supply from OPEC producers.
Brent crude, the international benchmark, climbed 0.57% to $64.92 per barrel, while the U.S. benchmark West Texas Intermediate (WTI) rose by 0.55% to $61.50 per barrel, driven by market reactions to the latest developments in trade and diplomacy.
Prices were initially buoyed by the United States’ announcement of additional tariff exemptions on select technology products, such as smartphones and computers. However, the gains were short-lived after U.S. President Donald Trump denied formally approving the exemptions, reigniting trade uncertainties.
“NOBODY is getting ‘off the hook’ for the unfair Trade Balances, and Non-Monetary Tariff Barriers, that other Countries have used against us,” Trump posted on his Truth Social account, singling out China as the worst offender.
Meanwhile, declining oil output from the Organization of Petroleum Exporting Countries (OPEC) is fuelling market anxiety. OPEC’s latest report revealed a production dip of 78,000 barrels per day (bpd) in March, bringing total output to 26.776 million bpd. The broader OPEC+ alliance—which includes non-OPEC members—also saw a reduction of 37,000 bpd, with production totalling 41.02 million bpd.
These developments come as traders closely monitor nuclear talks between the United States and Iran, which could determine the future of sanctions on Iranian oil exports. Iran’s Foreign Ministry confirmed that the next round of negotiations will take place on Saturday in Muscat, Oman.
Downplaying the difficulties of the talks, President Trump told reporters that resolving the nuclear standoff was “almost an easy one.” However, he expressed frustration over the delay in scheduling the next session, accusing Tehran of intentionally stalling the process.
As diplomatic uncertainty and fluctuating supply continue to shape the energy landscape, analysts warn that volatility in the oil market could persist in the coming weeks.
