Raisi Set to Speak as Nuclear Talks Drag On: Iran Snapshot

Here is a snapshot of what’s happening with Iran’s nuclear talks in Vienna and how they are affecting energy markets.

Latest Developments

Envoys in Vienna said Sunday they would need more time to hammer out a nuclear deal between Iran and world powers, pushing deliberations well into the summer. It’s the third time since talks began in April that negotiators have missed self-imposed deadlines to rejuvenate the agreement that would lift U.S. sanctions on Iran in exchange for it scaling back atomic activities.

This came after hardline cleric Ebrahim Raisi on Saturday was declared the winner of Iran’s presidential election. While Raisi’s win isn’t expected to derail efforts to return the U.S. to the accord, the upcoming change in administration has complicated diplomacy. The president-elect is himself subject to sanctions and Iran says they must be removed. Envoys now want to seal an agreement before mid-August, when Raisi takes over from Hassan Rouhani, who helped seal the original deal in 2015.

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Oil

A lack of progress in the sixth round of talks boosted crude prices in early trading on Monday. New York Futures climbed to nearly $72 a barrel, while Brent rose 0.5% to around $74 at 1:45 p.m. in Singapore.

Oil has rallied in 2021 as major economies loosen coronavirus restrictions and with the OPEC+ cartel still holding back several millions of barrels a day from the market. Iran’s exports plunged from 2 million barrels a day to barely anything after former President Donald Trump withdrew the U.S. from the nuclear accord in 2018 and tightened sanctions.

Agenda

Today: Raisi scheduled to hold a press conference in Tehran at 2 p.m. local time (10:30 a.m. London)

June 24: A temporary monitoring pact with inspectors from the International Atomic Energy Agency expires, something which could complicate efforts to seal the nuclear deal. However Iran and the IAEA are already in talks and the agreement is expected to be extended, European Union deputy foreign policy chief Enrique Mora said on Sunday.

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