Vance Reports Progress in US-Iran Talks as WTI Crude Slides Below Key Level

US Vice President JD Vance said on Monday that talks with Iranian officials in Switzerland created a "good foundation for a successful final deal," as WTI crude oil traded at $73.86 per barrel, a decline of 2.6%. The price slide came as a 60-day sanctions waiver took effect and tanker traffic resumed through the Strait of Hormuz.

The talks, part of an interim deal signed last week by President Donald Trump and Iranian President Masoud Pezeshkian, set a 60-day negotiation period to address nuclear issues, sanctions relief, and regional ceasefires. Vance made the remarks at the Buergenstock resort, where technical teams continued work on the final text.

The US Treasury issued the sanctions waiver on June 22, allowing Iran to sell oil and receive payments for 60 days. The move was coupled with a threat from Trump to restart hostilities if Tehran disrupted shipping through the Strait of Hormuz. Data firm Kpler recorded 71 tanker transits through the strait over the weekend, compared with a pre-war average of 100 to 130 daily vessels.

The decline in crude prices reflects a shrinking geopolitical risk premium as the likelihood of a permanent agreement increased. Brent crude fell 3.2% to $77.52 per barrel. The 60-day window is designed to allow negotiators to finalize terms on nuclear monitoring, reconstruction, and enforcement mechanisms.

The settlement price for WTI crude oil will be determined at the close of trading on Monday at 18:30 UTC. Investors now watch for any signs of a breakdown in the talks, which could reverse the price drop, or for continued progress that could further reduce the risk premium priced into oil markets.