U.S. Denial of 'Possible Iran-U.S. Agreement' Halts Decline in Oil Prices

After the White House labeled the news of a 'possible agreement between Iran and the U.S. on oil exports' as 'false,' the decline in oil prices that had occurred following the publication of this news was halted. The report of a potential U.S.-Iran agreement cited two anonymous sources, suggesting that Iran and the U.S. were nearing a temporary agreement to lift some sanctions in exchange for a reduction in Iran's uranium enrichment. A spokesperson for the White House National Security Council referred to an article published on the 'Middle East Eye' website, stating, 'This report is false and misleading.' A day earlier, Vedant Patel, Deputy Spokesperson for the U.S. State Department, emphasized to reporters that he does not respond to rumors or leaks of diplomatic conversations 'which tend to be false and misleading.' He added, 'You have heard from me, Secretary of State Blinken, and President Biden, repeatedly and clearly that the United States is committed to never allowing Iran to obtain a nuclear weapon.' An executive order from the U.S. in 2018 reinstated sanctions against Iran's oil, banking, and transportation sectors following the previous U.S. president's withdrawal from the JCPOA in 2015. The increase in U.S. gasoline reserves has raised concerns about demand, and U.S. crude oil reserves recorded a slight decrease of 451,000 barrels. Saudi Arabia also announced that following the conclusion of the OPEC+ meeting held on Sunday, June 4, in Austria, it would reduce oil production by 'one million barrels per day' starting next month. Many believe that the central bank will refrain from raising interest rates, which could increase oil prices even before a reduction in supply and depletion of global reserves.