Brent crude drops 4% ahead of Iran press conference

Oil prices plunged on Thursday ahead of a press conference in Switzerland over Iran’s nuclear programme.

If the negotiations between Tehran and world powers are successful, Iran could be allowed to release more crude onto the global oil markets.

Discussions over Iran’s nuclear programme were meant to end on 31 March, but have stretched beyond the deadline after diplomats said the chances of a preliminary agreement were finely poised.

On Thursday afternoon, a European Union official told reporters that a press conference had been scheduled for Thursday evening, which prompted speculations that an agreement had indeed been reached.

“The progress that has been achieved around the negotiation table has shown clearly how much more successful it is when sanctioning alone,” said IG analyst Alastair McCaig.

“Oil traders have increasingly factored in a return of Iranian oil to the global markets and as the country would be OPEC’s third-largest producer a fall by as much as 10% is being considered a very real possibility.”