Oil falls after progress in US-Iran talks

Oil prices fell on Thursday amid expectations of a nuclear deal between the United States and Iran that could lead to the easing of sanctions and the release of more barrels onto the global market.

Brent crude futures fell $1.56, or 2.36%, to $64.53 per barrel. West Texas Intermediate crude futures fell $1.53, or 2.42%, to $61.62 per barrel. Mexican export blend futures , meanwhile, fell 2.83% to $57.71 per barrel.

U.S. President Donald Trump said Thursday that the United States was moving closer to securing a nuclear deal with Iran, and that Tehran had “more or less” agreed to the terms.

An Iranian official told NBC News in an interview published Wednesday that Iran was willing to reach an agreement with the United States in exchange for the lifting of economic sanctions.

“Any immediate sanctions relief stemming from a nuclear deal could unlock an additional 0.8 million barrels per day of Iranian crude oil for the global market, an undeniably bearish development for prices,” said SEB analyst Ole Hvalbye.

Washington imposed sanctions on Iran on Wednesday for manufacturing ballistic missile components in the country, the U.S. Treasury Department said, following sanctions imposed Tuesday on about 20 companies in a network it said has long shipped Iranian oil to China.

The sanctions followed a fourth round of talks between the United States and Iran in Oman aimed at addressing disputes over Iran's nuclear program.

“We’re oscillating between President Trump eliminating Iran or incorporating it into the community of nations, so the threat to supply is both ways. Whether some Iranian barrels continue to leak into the market or we reap the full benefit of Iranian production is what’s driving the price,” said John Kilduff, partner at Again Capital.

Russian President Vladimir Putin rejected the possibility of a face-to-face meeting with Ukrainian President Volodymyr Zelensky in Turkey on Thursday. Zelensky said Putin's decision to send what he called a "decorative" lineup showed the Russian leader was not serious about ending the war.

"I think that's supportive because part of the bearish assumption for prices is that if the situation between Ukraine and Russia resolves itself, then we can get Russian supply into the global market," Kilduff said.

Meanwhile, the International Energy Agency raised its forecast for oil demand growth in 2025 to 740,000 barrels per day, up 20,000 bpd from its previous report.