Crude oil futures settled lower on Monday as U.S.-Iran nuclear talks in Geneva created market jitters. The negotiations, which concluded after a full day of discussions, injected volatility into trading as investors weighed potential impacts on global oil supply. Market participants closely monitored developments, with any progress toward easing sanctions on Iran potentially increasing crude availability.

Energy traders have been on edge as diplomatic engagement between Washington and Tehran could reshape oil market dynamics. Iran, holding significant crude reserves, could boost exports if sanctions relief materializes from successful negotiations. The talks represent a critical juncture for energy markets already grappling with supply concerns and geopolitical tensions affecting major producing regions.

Oil prices have remained sensitive to diplomatic developments in the Middle East, where supply disruptions pose constant risks. The Geneva talks follow months of indirect negotiations aimed at reviving the 2015 nuclear deal. Market analysts suggest that while the immediate impact was downward pressure on prices, the long-term trajectory depends heavily on whether these diplomatic efforts yield concrete agreements that could alter the current supply landscape.