Oil prices pause ahead of U.S.-Iran talks… Iran moves to buy missiles from China

WTI, Brent down 1%

Iran: "An agreement with the U.S. is within sight"

Both sides preparing for possible military clashes

Iran pushes to buy hypersonic missiles

International oil prices posted a modest decline for a second straight day. With the United States and Iran set to begin nuclear talks on the 26th, markets are watching closely to see whether an agreement can be reached.

On the 24th (local time), April-delivery West Texas Intermediate (WTI) on the New York Mercantile Exchange fell $0.68 (1.03%) from the previous session to $65.63 a barrel. Brent futures settled down 1.01% at $70.77 a barrel.

Iranian Foreign Minister Abbas Araghchi wrote on X that "a historic opportunity has arrived to reach an unprecedented agreement that resolves mutual concerns and achieves mutual benefits." He added that he would resume talks with the "determination to reach a fair and equal agreement in as short a time as possible."

Araghchi also claimed that "an agreement with the United States has become close enough to touch," while adding the caveat that such a deal is possible only when a diplomatic approach is prioritized.

Although it is a one-sided assertion from Iran, oil prices are seen as having fallen on rising expectations for a positive outcome in the nuclear negotiations. Swiss bank UBS forecast that "oil prices will edge lower over the coming weeks, provided escalating tensions in the Middle East do not disrupt supply." According to North Dakota’s Department of Mineral Resources, U.S. crude prices currently reflect a geopolitical risk premium of about $3 to $4 a barrel.

However, the United States is still maintaining its posture of bolstering military capabilities near the Middle East. CNN reported that the U.S. is adding more assets, including deploying 12 stealth F-22 fighter jets to Israel. On the day, White House Press Secretary Karoline Leavitt said, "President Donald Trump’s first choice has always been a diplomatic solution, but he will not hesitate to use force if necessary."

Iran is also reported to be pursuing a contract with China to purchase anti-ship cruise missiles. Reuters, citing six sources, reported that "a deal for Chinese-made CM-302 missiles is in its final stages." The delivery schedule has reportedly not been agreed.

The CM-302 is a supersonic missile with a range of about 290 km. Reuters noted that "the missile can evade ship defense networks by flying at high speed at low altitude," adding that "if deployed, it would significantly enhance Iran’s strike capability."

Chinese state-owned companies are marketing the CM-302 as the world’s best anti-ship missile, capable of sinking an aircraft carrier or destroyer. Danny Citrinowicz, a senior Iran researcher at Israel’s Institute for National Security Studies (INSS), said, "If Iran can attack naval vessels in the region with hypersonic missiles, it would completely change the game." The Stockholm International Peace Research Institute (SIPRI) assessed that if the purchase goes through, it could help replenish Iran’s arsenal depleted by last year’s 12-day war with Israel.

Reporter Han Myung-hyun wise@hankyung.com