Oil slides on Iran nuclear talks, fresh US tariff uncertainty

By Florence Tan

SINGAPORE, Feb 23 (Reuters) - Oil prices slid 1% on Monday with the U.S. and Iran headed for a third round ‌of nuclear talks, easing concerns about a potential conflict, while President ‌Donald Trump created uncertainty for global growth and fuel demand with a new round of tariff ​hikes.

Brent crude futures slid 75 cents, or 1.05%, to $71.01 a barrel by 0055 GMT while U.S. West Texas Intermediate crude futures were at $65.74 a barrel, down 74 cents, or 1.11%.

Trump said on Saturday he would raise a temporary tariff from 10% ‌to 15% on U.S. ⁠imports from all countries, the maximum level allowed under the law, after the U.S. Supreme Court struck down his previous tariff ⁠programme.

"The tariff news over the weekend has resulted in some risk aversion flows this morning, which can be viewed in the price of gold and U.S. equity ​futures and ​this is weighing on the crude ​oil price," IG Markets analyst Tony ‌Sycamore said.

The tariff decision offset growing concerns of a military conflict between the U.S. and Iran, which pushed Brent and WTI prices up more than 5% last week.

Iran and the U.S. will hold a third round of nuclear talks on Thursday in Geneva, Oman's Foreign Minister Badr Albusaidi said on Sunday.

Sycamore ‌said the announcement supported his view that the ​U.S. and Iran are currently engaged in a ​diplomatic game of cat and ​mouse.

"I don't believe that the U.S. wants to attack Iran, ‌given the risks it brings in ​terms of regional destabilisation ​and, closer to home, voter discontent ahead of the November midterms," Sycamore said.

Iran has indicated it is prepared to make concessions on its ​nuclear programme in return ‌for the lifting of sanctions and recognition of its right to enrich ​uranium, a senior Iranian official told Reuters.

(Reporting by Florence Tan; ​Editing by Jamie Freed and Sonali Paul)