U.S. Vice President JD Vance holds a press conference in Switzerland after negotiations with Iran on the 22nd (local time) [Reuters=Yonhap News]

International oil prices fell sharply on the 22nd (local time) following the first round of negotiations between the United States and Iran after the signing of a memorandum of understanding (MOU) on a ceasefire.

On that day, the closing price of Brent crude futures for August delivery on the ICE Futures Exchange was $77.90 per barrel, down 3.31% from the previous trading day.

The closing price of West Texas Intermediate (WTI) crude futures for July delivery on the New York Mercantile Exchange was $74.82 per barrel, down 2.32% from the previous trading day.

Some progress made at the first high-level meeting held in Switzerland between the U.S. and Iran after signing the MOU on a ceasefire was a decisive factor in the decline in oil prices.

U.S. Vice President JD Vance announced at a press conference after the negotiations that Iran had agreed to resume nuclear inspections by the International Atomic Energy Agency (IAEA).

Vice President Vance also stated that a mechanism has been established to ensure the opening of the Strait of Hormuz and to prevent further conflicts in the Middle East.

In line with the progress in these negotiations, the United States has also granted exemptions from sanctions related to Iranian crude oil.

Treasury Secretary Scott Bessant announced that a temporary general license, valid for 60 days, has been issued to permit the production, delivery, and sale of Iranian crude oil as part of the productive talks in Switzerland.

The market anticipates that the possibility of resuming supply of Iranian crude oil has increased, which could continue to put downward pressure on international oil prices for the time being.