Oil Prices Tumble As Trump Hints Nuclear Deal with Iran Is Imminent

Oil prices slid more than 3% before paring losses after President Trump hinted that the U.S. was nearing a nuclear deal with Iran—a move that could increase global crude supply, Ines Ferre reported for Yahoo Finance.

If the Iran agreement goes easily, it is estimated that oil supply could increase by 200,000 to 400,000 barrels per day.

West Texas Intermediate futures fell to just above $61 per barrel, while Brent crude, the international benchmark, dropped to around $64.40. “We’ll see what happens,” Trump said during a visit to Doha, Qatar.

“But we’re in very serious negotiations with Iran for long-term peace. And if we do that, it’ll be fantastic.”

A senior Iranian official told NBC News this week that Iran would agree to never develop a nuclear weapon and meet other terms of the deal—if all economic sanctions were lifted immediately.

CIBC Private Wealth senior energy trader Rebecca Babin isn't convinced an agreement will go through so easily. But if it does, she estimates oil supply could increase by 200,000 to 400,000 barrels per day.

"They [Iran] have really gotten quite good at skirting sanctions, so most don’t expect a massive flood hitting the market if sanctions are lifted," Babin told Yahoo Finance.

Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), currently produces more than 3 million barrels of oil per day.