Categories: Energy

Oil prices drop amid US-Iran de-escalation, firm dollar

Oil prices fell on Tuesday, February 3, 2026, as market participants weighed the possibility of a de-escalation in United States-Iran tensions, while a firmer dollar placed greater downside pressure on prices.

Brent crude futures fell 34 cents, or 0.5%, to $65.96 per barrel by 0623 GMT, while U.S. West Texas Intermediate crude was at $61.81 a barrel, down 32 cents, or 0.5%.

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.

Iran and the U.S. are expected to resume nuclear talks in Turkey on Friday, officials from both sides told Reuters on Monday.

FG to share electricity subsidy costs with states, LGs from 2026

Trump also warned that with big U.S. warships heading to Iran, bad things could happen if a deal was not reached.

Talks with the U.S. should be pursued to secure Iran’s national interests as long as “threats and unreasonable expectations” are avoided, Iranian President Masoud Pezeshkian posted on X on Tuesday.

“The volatile price actions of oil seen in the last four weeks have been driven by the geopolitical risk premium factor that is linked to the current U.S. administration’s expansionary foreign policy, especially the ‘on-off’ threats towards Iran,” OANDA senior market analyst Kelvin Wong said.

The Star

Segun Ojo

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