LONDON – International oil prices have edged closer to the $70 per barrel mark, hitting their lowest levels in nearly two years amid continued downward pressure in global markets.

Before the latest decline, oil was last seen below $70 per barrel in September 2024.

At the time of reporting, West Texas Intermediate (WTI) crude was trading at $74.4 per barrel, down 2 per cent, while Brent crude stood at around $78 per barrel, falling 2.5pc.

Crude oil produced from United Arab Emirates reserves also slipped to $71 per barrel, marking a decline of nearly 3pc over the past 12 hours.

Market analysts linked the downturn to shifting supply expectations and easing concerns over disruptions in key shipping routes, including the Strait of Hormuz.

Sentiment has also been influenced by ongoing diplomatic engagements involving Iran and the United States in Switzerland, where negotiations on broader regional tensions are underway.

Reports of a temporary deadlock in talks have further contributed to volatility, with markets closely watching developments in the fragile diplomatic process.

Oil prices have remained on a bearish trajectory since the start of the discussions, as investors weigh geopolitical risks against improving supply flows.

GENEVA – Iran said on Sunday that negotiations with the United States were not its preferred course of action, even as senior officials from both countries gathered in Switzerland for a fresh round of talks aimed at advancing a preliminary agreement reached earlier this week.

Hojjatoleslam Abdollah Haji Sadeghi, the Supreme Leader’s representative to the Islamic Revolutionary Guard Corps (IRGC), said Tehran would engage in diplomacy “with power and caution” but stressed that negotiations were not Iran’s primary option.

“Our primary option is the field of jihad, whether on the battlefield or in the streets,” Iranian media quoted him as saying, adding that Tehran was not concerned about the prospect of talks failing.

The negotiations follow a memorandum of understanding (MoU) signed on June 18 that laid the groundwork for a ceasefire and a broader diplomatic process between Washington and Tehran.

Iranian Foreign Ministry spokesman Esmaeil Baqaei said discussions in Switzerland would focus on ensuring implementation of commitments contained in the agreement, particularly provisions related to the cessation of hostilities, Iran’s oil exports and the release of frozen assets.

Tehran has also indicated that alleged Israeli violations of the Lebanon ceasefire will feature prominently in the talks.

“The Zionist regime continues to violate its commitments in Lebanon; this issue will be the main topic of discussion,” an Iranian foreign ministry spokesman said.

President Masoud Pezeshkian described the understanding reached with Washington as being largely in Iran’s interest, saying it would allow the country to regain access to financial resources currently held abroad.

Speaking in Tehran, Mr Pezeshkian expressed optimism that $6 billion in Iranian funds frozen in Qatar would be released as negotiations progressed. He also reiterated that Iran had no intention of developing nuclear weapons, describing that position as consistent with the country’s longstanding policy.

The Iranian president further accused Israel of opposing the diplomatic process and attempting to prolong instability in the region.

Meanwhile, US Vice President JD Vance arrived in Switzerland to participate in the talks, expressing hope that progress could be achieved on both Iran’s nuclear programme and the situation in Lebanon.

“I think we’re going to hopefully make progress on the nuclear issue and the Lebanon ceasefire issue,” Mr Vance told reporters before departing for Switzerland.

The negotiations come against the backdrop of renewed tensions over the Strait of Hormuz after Iran’s Revolutionary Guards warned of risks to shipping following Israeli military actions in Lebanon. However, US officials said commercial traffic through the strategic waterway continued uninterrupted.

Iran’s delegation is being led by senior officials including Foreign Minister Abbas Araghchi and parliamentary speaker Mohammad Bagher Ghalibaf, while the US team includes Mr Vance and senior envoy Steve Witkoff.

Pakistani officials are also participating in the discussions alongside representatives from Qatar, reflecting Islamabad’s role in facilitating the initial agreement between Washington and Tehran.

Technical-level negotiations are expected to continue beyond Sunday, with officials from both sides indicating that talks would proceed for as long as necessary.

ISLAMABAD – Interior Minister Mohsin Naqvi arrived in Mashhad on Saturday for a series of high-level meetings aimed at advancing Pakistan’s diplomatic efforts following the recently announced Iran-US memorandum of understanding (MoU).

According to Iran’s IRNA and Fars news agencies, the minister is scheduled to visit the Imam Reza Shrine before travelling on to Tehran.

Iranian Foreign Ministry spokesman Esmaeil Baghaei told ISNA that Naqvi’s visit was part of Pakistan’s continued efforts to help bridge remaining differences between Tehran and Washington and preserve the momentum generated by the agreement.

During the visit, Naqvi is expected to hold separate meetings with Iranian Interior Minister Eskandar Momeni and Foreign Minister Abbas Araghchi to discuss the next phase of engagement.

The visit comes as the preliminary Iran-US understanding enters a critical stage, with both sides preparing for technical talks on the nuclear programme, sanctions relief and mechanisms to verify mutual commitments.

Iranian officials said Pakistan had played a significant behind-the-scenes role in facilitating dialogue between Tehran and Washington in recent months, helping ease tensions that eventually led to the memorandum of understanding.

Diplomatic sources quoted by ISNA said the upcoming negotiations would be particularly sensitive, with both sides expected to tackle complex political and technical issues before any final, legally binding agreement is reached.

Islamabad’s latest diplomatic push is intended to help prevent setbacks in the talks and maintain the progress achieved through months of mediation, the report said.