Key Highlights

  • Rubio said the Iran talks are not close to a breakthrough and called some Iranian demands outrageous and ridiculous.
  • Tehran proposed shortening the timetable for restarting talks from seven days to two, but the sides remain far apart.
  • Iran's Foreign Ministry said it wants sanctions lifted and the war ended on all fronts before talks begin.
  • Brent crude fell 0.75% to USD 97.58 a barrel, while WTI futures slipped 0.42% to USD 90.45.

Rubio Plays Down Hopes of a Deal

US Secretary of State Marco Rubio said on Sunday evening that negotiations with Iran are not close to a breakthrough. Speaking to reporters in Florida before traveling to Paris for the G7 foreign ministers' meeting, he said the talks have not been productive so far. "Right now, it hasn't been very productive because the Iranian demands are simply not just unacceptable but, in some cases, outrageous and ridiculous and really not realistic," Rubio said.

He added that President Donald Trump would prefer to solve this and every problem diplomatically, but that "sometimes that's not possible, unfortunately."

Dispute Over the Timetable

Rubio's remarks followed a proposal from Tehran to shorten the timetable for restarting talks from seven days to two. Even so, the sides appear to remain far apart on the substance of any agreement. Iranian Foreign Ministry spokesperson Esmaeil Baghaei said on Monday that Tehran wants US sanctions lifted and the war ended on all fronts before negotiations begin. That sequencing runs against the US position, which ties progress to constraints on Iran's nuclear ambitions and the reopening of the Strait of Hormuz.

Oil Eases on Trump's Comments

Energy prices moved lower on Monday morning after Trump said in a CNN interview that renewed strikes on Iran were "highly unlikely" if talks progress toward a strong agreement. He said a resumption of hostilities in the conflict, now more than eight months old, was not on the table while the talks on Iran's nuclear program and the Strait of Hormuz can advance.

By 5:25 a.m. ET, Brent crude, the international benchmark, was down 0.75% at USD 97.58 a barrel. US West Texas Intermediate futures for December delivery were 0.42% lower at USD 90.45. A separate quote for the January 2027 Brent contract showed a larger decline later in the session.

Diplomacy Markers to Follow

The points to track are whether Iran and the United States agree on a date to restart talks, whether Tehran drops its precondition on sanctions, the outcome of the G7 foreign ministers' meeting in Paris, and how oil prices respond to each new signal.