Investing.com-- Oil prices steadied Tuesday as traders digested signs of a faltering U.S.-Iran nuclear deal as well prospects of negotiations toward a Russia-Ukraine ceasefire.
At 08:50 ET (12:50 GMT), Brent Oil Futures were down 0.3% to $65.29 per barrel, while West Texas Intermediate (WTI) crude futures edged down 0.3% to $61.98 per barrel.
Potential collapse of U.S.-Iran nuclear talks eases oversupply concerns
Iran on Monday reaffirmed that its uranium enrichment program is “absolutely non-negotiable,” a stance that continues to be a major sticking point in nuclear negotiations with the United States.
The U.S. has demanded that Iran halt all uranium enrichment activities, citing concerns over potential nuclear weaponization. Special envoy Steve Witkoff reiterated that any new agreement must prohibit Iran from enriching uranium, a position Iran firmly rejects.
The impasse has contributed to market volatility, with oil prices experiencing fluctuations amid concerns over the potential collapse of the talks.
A successful agreement could lead to the easing of sanctions and an increase in Iranian oil exports, impacting global energy markets.
"Indirect talks raise prospects for an eventual nuclear deal, which would lead to the lifting of sanctions and increased Iranian oil supply. However, the latest developments demonstrate that reaching a deal won’t be easy," said analysts at ING, in a note.
Russia, Ukraine to begin ceasefire talks - Trump
Following a phone call between U.S. President Donald Trump and Russian President Vladimir Putin on Monday, Trump announced that Russia and Ukraine would "immediately" begin ceasefire negotiations to end the ongoing war.
“I believe it went very well. Russia and Ukraine will immediately start negotiations toward a Ceasefire and, more importantly, an END to the War,” Trump said.
Putin described the efforts as "on the right track" and expressed readiness to work with Ukraine on a potential peace agreement.
However, the Kremlin has not committed to an unconditional ceasefire. Trump proposed future peace talks at the Vatican and indicated that the U.S. might reduce its involvement if negotiations stall.
Investors are monitoring the situation closely, as a resolution to the conflict could impact energy markets and geopolitical stability.
"Energy markets have been focused on potential peace talks, with an eventual deal possibly leading to an easing of sanctions against Russia," ING added.
Ayushman Ojha contributed to this article.