Oil falls from 14-year high on speculation of Iran nuclear deal that could increase crude exports

• Oil prices dropped from 2008 highs Thursday on speculation that a deal over Iran's nuclear program was near.
• Rumors were initially sparked by a social media message from an Iranian energy journalist.

Oil prices reversed lower Thursday on hopes for a revived deal to restrict Iran's ability to develop nuclear weapons that also would allow the Middle Eastern country to increase crude exports.

Speculation was initially fueled by a social media message from an Iranian energy journalist, who said he received "definitive" news that a deal could be signed in Vienna in the next 72 hours.

"Even if it might take a couple of days more or so, what appears to be certain is that the deal will be reached. #Iran's #oil is returning to the market under golden circumstances," Reza Zandi said in a Twitter post.

Minutes later, Mikhail Ulyanov, Russia's permanent representative to international organizations in Vienna, indicated talks were nearing an end.

"Yesterday marked 11 months since the #ViennaTalks started. A long and gruelling marathon. Now it is almost over," wrote Ulyanov on Twitter.

Oil prices were knocked back from their highest levels since 2008. Brent crude, the international benchmark, had been up as much as 6.1% at $119.84 before reversing course. Brent lost 3.1% then pared the decline to 0.5%. West Texas Intermediate crude had been up as much as 5.3% at $116.57, then fell by nearly 4% before paring the intraday loss to 0.4%.

US President Joe Biden had pledged to restore the 2015 Iran nuclear deal that was abandoned by President Donald Trump in 2018.

Iran and six countries in July 2015 reached a historic agreement that restricted its ability to develop nuclear weapons in exchange for lifting economic sanctions against Tehran. The sanctions included an embargo on Iranian oil. Iran has been selling its oil to China.

In recent sessions, oil soared past $100 a barrel on concerns about supply shortages after oil producer Russia began invading Ukraine last week.

While Western sanctions have so far avoided targeting its energy exports directly, commodity traders have been reluctant to deal in Russian oil and analysts have voiced concerns that oil sanctions could come if Moscow doesn't de-escalate its war soon.