Iran Nuclear Deal Restoration Talks Resume After 5 Months...Expectations for New Variables in International Oil Prices (Comprehensive)

Delegations from Various Countries Express Optimism... "We Are Confident"
US Sanctions Relief on Iran May Lead to Increased Production Effects

On the 29th (local time), delegations for the 7th round of talks to restore the Iran nuclear deal (JCPOA - Joint Comprehensive Plan of Action) gathered at the Palais Coburg Hotel conference hall in Vienna, Austria. Previously, negotiations to restore the Iran nuclear deal were temporarily suspended on June 20th and resumed on this day after five months. If this negotiation is concluded, U.S. sanctions on Iran are expected to be lifted, allowing Iranian crude oil to enter the oil market, which is anticipated to have the effect of increasing oil production. Vienna (Austria) = Reuters·Yonhap News

[Asia Economy Reporter Hyunwoo Lee] Negotiations to restore the Iran nuclear deal (JCPOA - Joint Comprehensive Plan of Action) resumed in Vienna, Austria after five months. As delegations from major countries expressed optimistic prospects regarding the conclusion of the talks, attention is focused on whether the gap between the United States and Iran, which had been running in parallel, can be narrowed. If the Iran nuclear deal is reached, Iranian oil will re-enter the oil market, which is expected to become a new variable in the volatile international oil prices.

According to foreign media including the Associated Press on the 29th (local time), the 7th round of talks to restore the Iran nuclear deal was held at the Palais Coburg Hotel in Vienna, Austria. Previously, the restoration talks had been held since early April but were temporarily suspended for five months following Iran's unilateral declaration to halt negotiations on June 20th, and have now resumed.

The atmosphere on the first day of talks was evaluated as positive. Enrique Mora, the European Union (EU) representative and Deputy Secretary-General of the EU External Action Service, who chaired the negotiations, said at a press conference after the meeting, "I am confident that important progress can be made in the coming weeks," and added, "The Iranian government also wants to reach new conclusions based on the results obtained in the previous talks."

However, it remains uncertain how much the positions of the United States and Iran, which had been running in parallel, will narrow. In the previous June talks, the U.S. demanded the preemptive dismantling of Iran's nuclear program, while Iran demanded the lifting of U.S. sanctions against Iran.

On the same day, Saeed Khatibzadeh, spokesperson for the Iranian Ministry of Foreign Affairs, said at a press conference before the talks, "If the United States has a firm will to resolve the issues that were not solved in previous talks, the dialogue will be easier," and pressured, "If the U.S. insists on the same position as in previous talks, Iran may consider other options."

If the Iran nuclear deal is concluded this time, it is expected to act as a factor lowering international oil prices. According to CNBC, if the U.S. sanctions against Iran are lifted following the deal, more than 2 million barrels per day of Iranian crude oil are expected to enter the oil market, resulting in an increase in supply.

Meanwhile, international oil prices, which had sharply declined due to concerns over the spread of the COVID-19 Omicron variant, rebounded again on optimism that the variant's impact will be limited. On the same day, West Texas Intermediate (WTI) crude oil on the New York Mercantile Exchange (NYMEX) rose 2.64% from the previous session to $69.95.