Iran Nuclear Deal Would Give a Little Boost to Global Oil Supply

The easing geopolitical risks weighed on sentiment already burdened by fears of rising supply from fellow OPEC members,

ANZ bank said in a note to clients

I think that is supportive because part of the bear case for prices is that if this Ukraine-Russia situation resolves itself then we can get that Russian supply onto the global market,

Kilduff said

We are swinging between President Trump zeroing out Iran to bringing them into the community of nations, so the threat to supply is in both directions, with either some Iranian barrels continually snuck onto the market or we get the full benefit of Iranian production, that is what is swinging the price,

said John Kilduff, partner at Again Capital in New York

The euphoria from Monday's US-China truce has faded, and now markets are waiting to see if further deals materialise from here.

Chris Beauchamp, chief market analyst at IG, said

Donald Trumppresident

We're in very serious negotiations with Iran for long-term peace,

Trump said