Oil holds steady amid U.S. Iran talks

February 3, 2026 (MLN): Oil prices held steady on Tuesday after sharp losses on Monday, as traders weighed signs of easing tensions between the United States and Iran, while a stronger U.S. dollar continued to pressure crude demand.

Brent crude futures went up by $0.10, or 0.15%, to $66.40 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures increased by $0.14, or 0.23%, to $62.28 per barrel by [5:11 pm] PST.

Brent and WTI crude had plunged more than 4% on Monday following remarks from U.S. President Donald Trump, who said Iran was “seriously talking” with Washington, suggesting a possible de-escalation of geopolitical risks in the Middle East.

Market participants are now focusing on the upcoming U.S. Iran nuclear talks scheduled for Friday in Turkey, which could influence oil volatility further.

Oil prices were further pressured by the U.S. dollar index hovering near a weekly high, making dollar-denominated crude more expensive for foreign buyers, according to CNBC.

The nomination of Kevin Warsh as the next Federal Reserve chair added to the greenback’s strength, indirectly weighing on crude.

On the trade front, President Trump revealed a deal with India, reducing U.S. tariffs on Indian goods from 50% to 18% in exchange for India cutting Russian oil purchases and lowering trade barriers.

This development could increase the global supply of Russian oil, adding further downside risk for crude prices.

Looking ahead, market experts expect oil to remain volatile and range-bound in February, with prices highly sensitive to geopolitical headlines, macroeconomic cues, and trade developments, while downside risks appear more pronounced.

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