Oil Prices Drop on Outlook for Friday US-Iran Negotiations

Oil fell for the first time in three days as anticipation built for Friday’s US-Iran negotiations in Oman, reducing the immediate risk of military action against OPEC’s key supplier. Brent approached $68 per barrel after a two-session gain, and West Texas Intermediate traded below $64 per barrel. Iranian Foreign Minister Abbas Araghchi confirmed the talks via social media. The outcome remains uncertain due to divergent positions on negotiation parameters, reinserting a risk premium into oil prices. The region supplies about a third of the world’s crude, and ongoing tensions over energy infrastructure in Ukraine have added volatility. Meanwhile, precious metals declined: silver fell more than 16%, and gold dropped as much as 3.5% amid broader selloffs. US crude inventories fell to their lowest level in a month in the wake of Wednesday’s EIA data, but less than previously expected.