Oil prices drop as Trump mulls dialogue with Iran over nuclear deal

Oil prices slipped on Friday, January 30, 2026, on signs the United States may engage in dialogue with Iran over its nuclear programme.

The dialogue is expected to reduce concerns of supply disruptions from a U.S. attack.

Brent crude futures fell $1.10 to $69.61 a barrel by 0707 GMT after rising 3.4% to close at its highest point since July 31 on Thursday.

The March contract expires later on Friday. The more active April contract slid $1.29 to $68.30.

U.S. West Texas Intermediate crude dropped $1.25 to $64.17 a barrel after gaining 3.4% to settle at its highest level since September 26 in the previous session.

Middle East tensions and oil prices have increased this week due to a U.S. military buildup in the region.

United States President Donald Trump urged Iran on Wednesday to make a deal on nuclear weapons or face an attack but on Thursday said he was planning to speak to the country’s leaders.

Iran responded to Trump’s earlier comments by saying it would strike back hard.

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“Prices eased after last night’s rally as the market reassessed geopolitical risks in the Middle East,” LSEG senior analyst Anh Pham said, adding neither a U.S. attack nor the closure of the crucial Strait of Hormuz waterway has actually materialised.

The Strait of Hormuz connects the Gulf to the Indian Ocean and is a key conduit for oil supplies from Saudi Arabia, Iraq, Kuwait, Qatar, the UAE, and Iran.

Prices also slipped as the dollar rose on Friday, paring a weekly slide, after Trump said he would soon announce his nominee to head the Federal Reserve and on optimism that lawmakers in Washington would avoid a government shutdown.

A stronger greenback can limit demand from oil buyers paying in other currencies, Reuters reported.

Both oil benchmarks are set to record their first monthly gains in six months amid the tensions between Iran and the U.S., with Brent up 14.5% to notch its biggest jump since January 2022.

WTI is on track to rise 12% in January, its biggest monthly gain since July 2023.

The Star