Oil falls after US, Iran signal progress in nuclear negotiations
9th February 2026
Oil prices slipped on Monday as renewed diplomatic engagement between the United States and Iran over Tehran’s nuclear programme eased fears of a potential conflict that could threaten crude supplies from the Middle East.
Brent crude futures fell 49 cents, or 0.72%, to $67.56 a barrel by 01:34 GMT, after gaining 50 cents in the previous session. U.S. West Texas Intermediate (WTI) crude dropped 42 cents, or 0.66%, to $63.13 a barrel, following a 26-cent rise on Friday.
According to IG market analyst Tony Sycamore, oil markets started the week on a calmer note, encouraged by what he described as constructive nuclear talks between Washington and Tehran held in Oman.
“With more discussions expected, the immediate risk of supply disruptions in the Middle East has eased significantly,” Sycamore said.
Both Iran and the United States agreed to continue indirect negotiations after what they termed positive talks on Friday, despite lingering differences. The progress helped calm concerns that a breakdown could escalate tensions in the region, especially as the U.S. has increased its military presence there.
Market participants have been particularly sensitive to developments around the Strait of Hormuz, a key shipping route between Iran and Oman through which roughly one-fifth of global oil consumption passes. Any disruption along the corridor could severely impact global supply.
The easing of tensions pushed both Brent and WTI down more than 2% last week, marking their first weekly decline in seven weeks.
Still, geopolitical risks remain. Iran’s foreign minister warned on Saturday that Tehran would retaliate against U.S. military bases in the region if attacked, underlining that the threat of conflict has not completely disappeared.
Beyond the Middle East, investors are also watching efforts to limit Russia’s oil revenues amid its war in Ukraine. The European Commission last week proposed a broad ban on services supporting Russia’s seaborne crude exports.
In Asia, refiners in India — previously the largest buyers of Russian seaborne oil — are steering clear of purchases for April delivery and are expected to remain cautious. Industry sources say the move could also support New Delhi’s efforts to finalise a trade agreement with Washington.
Meanwhile, higher energy prices appear to be encouraging increased production in the United States. Baker Hughes reported on Friday that U.S. energy firms added oil and gas rigs for a third consecutive week, the first such streak since November.