(Bloomberg) --

Here is a snapshot of what’s happening with Iran, its nuclear talks and energy markets.

Latest developments

Vitol Group said the US may allow more sanctioned Iranian oil onto global markets even without a revival of the 2015 nuclear accord that the European Union sees as increasingly unlikely.  

Vitol, the world’s biggest independent crude trader, said Washington might turn more of a blind eye to sanctioned barrels flowing from Iran if US midterm elections are dominated by the need to reduce gasoline prices. 

“Uncle Sam might just allow a little bit more of that oil to flow,” Mike Muller, head of Asia at Vitol Group, said Sunday on a podcast produced by Dubai-based Gulf Intelligence. There was no immediate comment from Washington on his analysis. 

The nuclear deal curbed Iran’s atomic work in return for easing sanctions, including on Iranian oil exports. Talks between Tehran and world powers to revive the 2015 pact, known as the Joint Comprehensive Plan of Action (JCPOA), have been stalled since March. 

“The possibility to strike a deal and return to #JCPOA is shrinking,” the EU’s foreign policy chief Josep Borrell said in a tweet on Saturday after he discussed the topic with Iran’s foreign minister, Hossein Amirabdollahian. 

Latest coverage

  • US May Allow More Iran Oil to Flow Even Without Deal, Says Vitol
  • Chances of Reviving Iran Nuclear Pact Shrinking, Borrell Says
  • Iran’s Seizure of Oil Tankers Responds to ‘Robbery,’ Leader Says

Oil

Oil extended gains after Saudi Arabia signaled confidence in demand with a bigger-than-expected increase in the price of its crude for Asia.

West Texas Intermediate traded near $120 a barrel after earlier rising to the highest level in almost three months. Saudi Arabia boosted its official selling prices for Asian customers for July as China -- the world’s top crude importer -- cautiously emerges from virus lockdowns that have strained its economy.

Iran has raised oil exports this year, despite sanctions, with most of the barrels ending up in China. A revived nuclear deal would lead to an additional 500,000 to 1 million barrels per day entering international markets, enough to weigh on prices, according to energy analysts. 

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