Global crude oil prices declined on Monday after high-level talks between the United States and Iran in Switzerland produced a 60-day diplomatic roadmap aimed at easing tensions and stabilising energy flows from the Middle East.

Brent crude dropped by more than 2%, easing to around $78.89 per barrel after briefly crossing $82 earlier in the trading session. U.S. West Texas Intermediate (WTI) also slipped by nearly 3% to $75.16 per barrel, as traders shifted focus from geopolitical risk premiums to expectations of improved supply stability.

The talks, held in Geneva with mediation support from Qatar and Pakistan, brought together senior delegations from both countries following a brief delay linked to earlier regional tensions.

The U.S. delegation was led by Vice President JD Vance, while Iran’s team was headed by Mohammad Bagher Ghalibaf. Early discussions reportedly saw friction over maritime security in the Gulf region, including concerns around access routes in the Strait of Hormuz. However, mediators said both sides returned to structured negotiations and concluded the initial session on a “constructive” note.

A key outcome of the meeting was agreement on a 60-day roadmap designed to guide further negotiations toward a more comprehensive long-term arrangement. Both sides also reportedly agreed to establish a direct communication channel to reduce the risk of misunderstandings in sensitive maritime zones.

Oil markets reacted quickly to the perceived reduction in supply risk. Analysts said the prospect of diplomatic progress has reduced fears of disruption to shipping routes and energy infrastructure across the Gulf region.

The easing sentiment was also reinforced by expectations that Iran could gradually increase crude exports if sanctions enforcement is softened under any future arrangement. Some market estimates suggest Iranian output could return toward pre-restriction levels of around 1.5 million barrels per day, though analysts caution that timelines remain uncertain.

Energy analyst Sugandha Sachdeva noted that prices were responding primarily to “improving prospects for diplomatic engagement,” which helped ease concerns over immediate supply shock.

The decline in crude prices provided short-term relief for energy-importing economies, easing inflationary pressure and supporting gains in select equity markets across Europe and Asia.

However, energy analysts warned that the situation remains fragile. While the 60-day framework reduces the risk of immediate escalation, shipping flows and insurance costs in the region are expected to normalise gradually rather than immediately.

Market research groups tracking global crude logistics said vessel movement through key Gulf routes is likely to remain cautious until there is clearer confirmation of sustained diplomatic stability.

For now, traders say the focus will remain on how quickly the Geneva roadmap translates into concrete policy shifts and whether both sides can maintain momentum in the coming weeks.