Finance
Oil steady as markets consider possible U.S.–Iran de-escalation, firm dollar
Published by Global Banking and Finance Review
Posted on February 3, 2026
2 min readLast updated: February 3, 2026
Quick Summary
Oil prices are stable as U.S.-Iran tensions ease and the dollar strengthens. Brent and WTI crude see minor gains, while OPEC+ holds production steady.
Oil Prices Steady Amid U.S.–Iran Tension De-escalation Talks
Market Overview and Key Developments
Feb 3(Reuters) - Oil prices held steady on Tuesday as market participants weighed the possibility of a de-escalation in U.S.-Iran tensions, with a firmer dollar limiting the upside.
Impact of U.S.-Iran Relations
Brent crude futures were up 6 cents, or 0.1%, at $66.36 per barrel at 0102 GMT. U.S. West Texas Intermediate crude was at $62.24 per barrel, up 0.2%.
Dollar Strength and Oil Demand
Oil prices fell more than 4% on Monday after U.S. President Donald Trump said Iran was "seriously talking" with Washington, signaling a de-escalation of tensions with the OPEC member.
OPEC+ Production Decisions
Iran and the U.S. are expected to resume nuclear talks on Friday in Turkey, officials from both sides told Reuters on Monday, and Trump warned that with big U.S. warships heading to Iran, bad things could happen if a deal was not reached.
Limiting the upside, the U.S. dollar index hovered near a high of more than a week. A stronger greenback hurts demand for dollar-denominated crude from foreign buyers.
On the trade front, Trump on Monday unveiled a deal with India that slashes U.S. tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil purchases and lowering trade barriers.
Trump announced the deal on social media following a call with Indian Prime Minister Narendra Modi, noting that India had agreed to buy oil from the U.S. and possibly Venezuela.
Recently, India had started to slow its purchases from Russia. In January, they stood at around 1.2 million barrels per day (bpd) and are projected to decline to about 1 million bpd in February and 800,000 bpd in March, according to a Reuters report.
OPEC+ agreed to keep its oil output unchanged for March, the group said on Sunday.
The eight members - Saudi Arabia, Russia, the United Arab Emirates, Kazakhstan, Kuwait, Iraq, Algeria and Oman - raised production quotas by about 2.9 million bpd from April through December 2025, roughly 3% of global demand.
(Reporting by Anushree Mukherjee in Bengaluru; Editing by Thomas Derpinghaus)
Key Takeaways
- •Oil prices remain stable amid U.S.-Iran tension talks.
- •Brent crude and WTI crude see slight increases.
- •A firm U.S. dollar limits oil demand from foreign buyers.
- •U.S.-India trade deal impacts global oil purchases.
- •OPEC+ maintains oil output levels for March.
Frequently Asked Questions about Oil steady as markets consider possible U.S.–Iran de-escalation, firm dollar
1What is OPEC?
OPEC, or the Organization of the Petroleum Exporting Countries, is a group of oil-producing countries that coordinates and unifies petroleum policies to ensure the stabilization of oil markets.
2What is crude oil?
Crude oil is a natural, unrefined petroleum product composed of hydrocarbon deposits and other organic materials. It is used to produce fuels and other products.
3What is the dollar index?
The dollar index measures the value of the U.S. dollar relative to a basket of foreign currencies. It reflects the strength of the dollar in the global market.
4What is oil demand?
Oil demand refers to the total amount of crude oil that consumers and industries require over a specific period. It is influenced by economic activity and market conditions.
5What is a futures contract?
A futures contract is a legal agreement to buy or sell a specific commodity or asset at a predetermined price at a specified time in the future.
