US-Iran talks in Oman… oil jumps 3% on fears negotiations could collapse

High-level talks between the United States and Iran, which had faced the risk of stalling, will go ahead as scheduled after mediation by a third country. However, with disagreements persisting over the agenda, attention is focused on where the talks will head.

Iranian Foreign Minister Abbas Araghchi said on X on the 4th (local time) that “nuclear talks with the United States are scheduled to be held at 10 a.m. Friday in Muscat.” A White House official also confirmed to AFP that “the talks will take place in Oman on the 6th.”

Earlier, US outlet Axios reported that the likelihood of the talks collapsing had increased because the US was refusing Iran’s request to change the venue. The meeting was initially set to be held in Türkiye, but Iran changed the location to Oman the previous day and requested a bilateral meeting limited to discussing the nuclear issue.

As the talks neared the brink of being called off, a Middle Eastern country reportedly contacted the White House that afternoon and persuaded the Trump administration. In a follow-up report, Axios cited sources as saying “the US-Iran nuclear negotiations have been put back on track,” adding that it was “the result of an urgent lobbying push by several Middle Eastern leaders that afternoon urging the Trump administration not to carry out a threat to derail the talks.”

Oil prices swung sharply on developments in US-Iran tensions. On the New York Mercantile Exchange, West Texas Intermediate (WTI) futures settled at $65.14 a barrel. That was up 3.05% from the previous session. Prices reacted to reports that the US-Iran meeting might not take place.

Oil was also lifted after President Donald Trump warned in an interview with NBC that if a diplomatic solution were blocked, Iran’s Supreme Leader Ayatollah Ali Khamenei would have “a lot to worry about.”

Later, Iran said discussions over nuclear negotiations with the US would proceed as planned, prompting oil to give back part of its gains.

The talks are expected to focus primarily on Iran’s nuclear weapons program. The US, however, says other issues should also be addressed alongside the nuclear program.

US Secretary of State Marco Rubio said that day, “If you’re going to get anything meaningful, certain issues have to be included—things like their ballistic missile range, their support for terrorist groups in the Middle East, the nuclear program, and how they treat their own people.” He added, “The United States is always prepared to negotiate,” but said he could not be sure “whether we can reach an agreement” with Iran.

Iran also voiced complaints. Tasnim News Agency, a semi-official outlet affiliated with Iran’s Islamic Revolutionary Guard Corps, cited a source as saying, “The issue is not the change of venue, but that the US side keeps changing its position.”

The Financial Times (FT) interpreted the reports as a signal that Iranian authorities want to follow the same format as the talks held with the US last year. The negotiations held in Oman at the time focused on the nuclear program rather than issues such as Iran’s ballistic missile capabilities.

Reporter Myung-hyun Han wise@hankyung.com