Brent crude retreats on potential Iran deal, strong dollar

Brent crude oil lost nearly 4 percent on Monday after Iran said it could clinch a deal on its nuclear program with the United States next week, raising speculations Iran will end several years of oil export sanctions.

"If there is the political will to accept that an agreement and sanctions cannot go together, then we can have an agreement this time," said Iranian Foreign Minister Mohammad Javad Zarif.

Now, Iran has the chance to bolster its oil exports after it has faced sanctions from the U.S. and its Western allies.

Worries of oil disruptions from OPEC members, along with the drop in oil production from Libya and Iraq, have helped oil prices to rebound from its record low.

The strengthening U.S. dollar continued to put downside pressure on all dollar-denominated commodities, as the dollar index traded near 11-year high against a basket of major currencies.

As of 05:30 GMT, Brent crude for April delivery traded around $60.40 a barrel, where the lowest level in the sessions was recorded at $60.04.

However, U.S. crude oil rose nearly 2 percent to trade above $50 a barrel, after locking its second consecutive weekly decline last week.