Finance
Oil extends decline ahead of US-Iran talks
Published by Global Banking & Finance Review®
Posted on February 6, 2026
2 min readLast updated: February 6, 2026
Quick Summary
Oil prices are declining as US-Iran talks in Oman ease Middle East tensions. WTI crude futures fall, with geopolitical factors impacting the market.
Oil extends decline ahead of US-Iran talks
Impact of Geopolitical Tensions on Oil Prices
By Florence Tan
Current Oil Price Trends
SINGAPORE, Feb 6 (Reuters) - U.S. crude futures extended their decline on Friday, on track for their first weekly drop in weeks, as concerns of supply disruption in the Middle East eased with investors focusing on the outcome of U.S.-Iran nuclear talks in Oman later in the day.
Geopolitical Factors Influencing Prices
U.S. West Texas Intermediate crude was at $62.47 a barrel by 0013 GMT, down 82 cents or 1.3%, after closing 2.84% lower on Thursday.
Future Predictions for Oil Prices
The U.S. and Iran have agreed to hold talks in Oman on Friday amid heightened tensions as the U.S. builds up forces in the Middle East and regional players seek to avoid a military confrontation that many fear could escalate into a wider war.
About a fifth of the world's total oil consumption passes through the Strait of Hormuz between Oman and Iran. Other OPEC members, Saudi Arabia, the United Arab Emirates, Kuwait and Iraq, export most of their crude via the strait, as does Iran.
"Escalating geopolitical tensions between the U.S. and Iran have contributed to higher oil prices," Capital Economics analysts said in a note.
"But we think that geopolitical fears will give way to weak fundamentals," they said, pointing to a recovery in Kazakhstan's oil output which will help push oil prices lower towards $50 per barrel by end-2026.
(Reporting by Florence Tan; Editing by Chris Reese)
Key Takeaways
- •Oil prices decline as US-Iran talks approach.
- •Geopolitical tensions influence current oil trends.
- •WTI crude futures drop to $62.47 a barrel.
- •Strait of Hormuz remains a critical oil passage.
- •Kazakhstan's output recovery may lower prices.
Frequently Asked Questions about Oil extends decline ahead of US-Iran talks
1What is West Texas Intermediate (WTI)?
West Texas Intermediate (WTI) is a grade of crude oil used as a benchmark in oil pricing. It is known for its light and sweet characteristics, making it desirable for refining.
2What is OPEC?
The Organization of the Petroleum Exporting Countries (OPEC) is a group of oil-producing countries that coordinates policies to manage oil production and prices.
3What is a crude oil future?
A crude oil future is a financial contract obligating the buyer to purchase, and the seller to sell, a specific quantity of crude oil at a predetermined price on a specified date.
