Finance
Oil falls by nearly 3% on Iran talks, OPEC+ production pause
Published by Global Banking and Finance Review
Posted on February 1, 2026
2 min readLast updated: February 2, 2026
Quick Summary
Oil prices dropped over $1 per barrel due to ongoing US-Iran talks. Brent and WTI crude futures saw significant declines.
Oil falls by nearly 3% on Iran talks, OPEC+ production pause
Impact of Iran Talks on Oil Prices
By Katya Golubkova
Current Oil Price Trends
TOKYO, Feb 2 (Reuters) - Oil prices fell by nearly 3% on Monday as U.S. President Donald Trump said over the weekend Iran was "seriously talking" with Washington.
OPEC+ Production Decisions
Brent crude futures were down $1.90 per barrel, losing 2.8%, to $67.39 per barrel at 2350 GMT. U.S. West Texas Intermediate crude also fell $1.90 per barrel, losing 2.9%, to $63.32 per barrel.
Market Analyst Insights
Both contracts dropped sharply from the previous session, when Brent hit a six-month high and WTI was hovering near its highest since late September on mounting tensions between the United States and Iran.
Trump repeatedly threatened Iran with intervention if it did not agree to a nuclear deal or failed to stop killing protesters. On Saturday Trump told reporters Iran was "seriously talking" with Washington, hours after Tehran's top security official Ali Larijani said on X that arrangements for negotiations were underway.
"I hope they negotiate something acceptable," Trump said. "You could make a negotiated deal that would be satisfactory with no nuclear weapons."
De-escalation of U.S.-Iran tensions is driving oil prices down on profit-taking, said IG market analyst Tony Sycamore.
"The crude oil market is interpreting this as an encouraging step back from confrontation, easing the geopolitical risk premium built into the price during last week's rally and prompting a bout of profit-taking," he said.
OPEC+ agreed to keep its oil output unchanged for March at a meeting on Sunday. In November they froze further planned increases for January through March 2026 because of seasonally weaker consumption.
"Geopolitical risks mask a fundamentally bearish oil market," Capital Economics said in a January 30 note. "The historical example of last year's 12-day war (between Israel and Iran), and a well-supplied oil market, will still bear down on Brent crude prices by end-2026."
(Reporting by Katya Golubkova; Editing by Chris Reese)
Key Takeaways
- •Oil prices fell by over $1 per barrel.
- •Brent crude futures dropped 2.7% to $67.48.
- •WTI crude fell 2.8% to $63.41.
- •Trump mentioned Iran is 'seriously talking' with Washington.
- •Negotiations between the US and Iran are underway.
Frequently Asked Questions about Oil falls by nearly 3% on Iran talks, OPEC+ production pause
1What is Brent crude?
Brent crude is a major trading classification of crude oil originating from the North Sea. It serves as a benchmark for oil prices worldwide.
2What is West Texas Intermediate (WTI)?
West Texas Intermediate (WTI) is a grade of crude oil used as a benchmark in oil pricing. It is sourced from the U.S. and is known for its light and sweet characteristics.
3What are oil futures?
Oil futures are contracts to buy or sell oil at a predetermined price at a specified time in the future. They are used by traders to hedge against price fluctuations.
