NEW YORK: Oil prices fell from seven-year highs on Monday as concerns over tight supply were offset by signs of progress in nuclear talks between the United States and Iran, which could lead to the removal of US sanctions on Iranian oil sales.

Brent crude was down 42 cents, or 0.5%, at $92.85 by 12:03 a.m. EST (1503 GMT), having earlier touched its highest since October 2014 at $94.

US West Texas Intermediate crude fell 93 cents, or 1%, to $91.38 after touching $92.73.

US President Joe Biden’s administration on Friday restored sanctions waivers to Iran to allow international nuclear cooperation projects as talks on the 2015 international nuclear deal enter the final stretch.

Although the sanctions relief will have limited impact on Iran’s struggling economy, the move was perceived by markets as a signal that both sides are determined to reach a deal.

Iran could quickly export millions of barrels of crude and help to drive down red-hot oil prices if US sanctions are lifted. It seems that Iran has been moving oil into place to prepare for the eventual resumption of its exports. “Iran may be missing the money from the sale of oil barrels and the oil complex is certainly missing the oil,” said John Kilduff, partner at Again Capital LLC in New York.

Kazuhiko Saito, chief analyst at Fujitomi Securities, said that “investors expect more twists and turns” in the talks, with no agreement likely any time soon.

Crude prices, which have rallied about 20% this year, are likely to surpass $100 a barrel because of strong global demand, analysts have said.

The Organization of the Petroleum Exporting Countries and allies led by Russia, together known as OPEC+, are struggling to meet output targets despite pressure from top consumers to raise production more quickly.

Fuelling supply concerns, tensions remain high in Eastern Europe, with White House national security adviser Jake Sullivan saying on Sunday that Russia could invade Ukraine within days or weeks but might still opt for a diplomatic path.