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Brent drops as US-Iran peace talks optimism offsets OPEC+ output boost
OPEC+ agreed to raise production by 188,000 barrels per day from September, adding downward pressure as Brent backed away from the $100 zone.
Brent oil fell $7 on a gap-lower opening Monday, as renewed de-escalation between the US and Iran followed President Trump calling off a planned attack and announcing fresh peace talks starting today, according to Action Forex.
The optimism on a potential peace solution eased pressure that had recently pushed Brent into the dangerous $100 area, which had been touched around July 23 to 24 without a sustained break higher.
Action Forex also pointed to a second factor weighing on prices, OPEC+ decision to increase production by 188,000 barrels per day from September.
The article said markets remain cautiously optimistic, but highlighted that key sticking points in talks include control of the Hormuz Strait and Iran’s nuclear program. It added that near-term support levels to watch were $80.66 to $80.50 and $80.0, with a weaker move potentially opening the door toward the $70 zone, while broken resistance points around $83.48 and $86.05 could cap rebounds.
Latest closeBrent $90.12 ▲1.2%