Senior E3 (France, Germany, UK) diplomats said on Friday that Iran has backtracked on the diplomatic progress made in recent nuclear talks, according to Reuters. The diplomats expressed disappointment and concern after analysing Iranian proposals for changes to the text negotiated during the prior six rounds of talks in Vienna. Iran has demanded major changes, they said, adding that it is now unclear how these new gaps can be closed in a realistic timeframe given these drafts. 

Market Reaction

The news has added tailwinds for crude oil, with WTI at session highs and testing the $69.00 level. A WSJ report framed the comments as the closest E3 diplomats have yet come to admitting that a return to the old JCPOA nuclear pact agreed back in 2015 is impossible. At present, the US has placed severe sanctions to prevent Iran from exporting crude oil, which would only be lifted upon both sides agreeing on a return to the old nuclear pact.