World powers will adjourn their talks in Vienna later on Wednesday as differences between Iran and the U.S. over how to restore the 2015 nuclear deal seem likely to delay the Islamic Republic’s return to oil markets.
Iran’s lead negotiator in the talks and Deputy Foreign Minister Abbas Araghchi said in a statement on Telegram that diplomats from China, Russia and the European Union will hold a meeting of the accord’s Joint Commission before returning to their capital cities to consult with their governments over remaining sticking points.
Sounding a note of optimism, Araghchi said those differences “have reached a point where everyone believes that they’re not unsolvable,” according to comments he made to Iranian state TV.
He added that diplomats will agree on a date to return to the Austrian capital for the next round of talks at the end of Wednesday’s meetings. “All the delegations are determined and there is full seriousness,” Araghchi said.
The nuclear deal has been on the verge of collapse since it was abandoned by former President Donald Trump in 2018. His sanctions on Iran’s economy, and the Islamic Republic’s subsequent decision to significantly expand its nuclear program, triggered a crisis in the Persian Gulf which has roiled markets and almost led to war.
Oil market participants are closely watching the talks for signs of when the U.S. will ease its sanctions on Iran’s energy sector and allow the Islamic Republic to return to global oil markets and hike crude production back up to pre-sanctions levels.
Crude prices rose above $70 a barrel on Tuesday as traders reacted to signals that the talks were stalling and would need to go to another round. Brent climbed another 0.9% to $70.88 at 10:30 a.m. in London on Wednesday.
Ali Rabiei, Iran’s government spokesman, said this week officials hope they can have the nuclear deal fully back in effect by August, when President Hassan Rouhani leaves office, revising expectations that an agreement would be reached this month before the country’s presidential election on June 18.
Iranian officials have said disagreements remain over the removal of certain individual sanctions and the scaling back of Iran’s nuclear activities.
