Oil prices drop as Iran affirms commitment to nuclear treaty

Oil prices fell on Friday, July 4, 2025, after Iran reaffirmed its commitment to nuclear non-proliferation and amid expectations that major producers are set to agree to raise their output this weekend.

Brent crude futures were down 22 cents, or 0.32%, to $68.58 a barrel by 0445 GMT, while U.S. West Texas Intermediate crude fell 12 cents, or 0.18%, to $66.88.

Trade was thinned by the United States Independence Day holiday.

The United States has been planning to meet with Iran next week to restart nuclear talk, while Iran Foreign Minister Abbas Araqchi said Tehran remains committed to the nuclear Non-Proliferation Treaty.

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“Thursday’s news that the U.S. is preparing to resume nuclear talks with Iran, and Araqchi’s clarification that cooperation with the U.N. atomic agency has not been halted considerably eases the threat of a fresh outbreak of hostilities,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.

Araqchi’s comments came a day after Tehran enacted a law suspending cooperation with the U.N. nuclear watchdog, the International Atomic Energy Agency.

“But the price correction may have to wait till Monday, when the U.S. reopens from a long weekend and takes in Sunday’s OPEC+ decision, which is likely to be another 411,000 barrels per day target hike in August,” Hari said.

OPEC+, the world’s largest group of oil producers, is set to announce an increase of 411,000 bpd in production for August as it looks to regain market share, four delegates from the group told Reuters.

The Star