By Alex Kozul-Wright
Oil prices tumbled 5% early Monday as President Donald Trump said Iran was "seriously talking" with the U.S. in a bid to diffuse geopolitical tensions.
Brent crude futures were down 4.6% to $66.10 a barrel, while West Texas Intermediate futures also fell 5% to $61.97.
Both benchmarks dropped significantly from Friday's session, when Brent touched a six-month high on the back of simmering tensions between Washington and Tehran.
But Trump signaled that talks with Iran were ongoing, in comments to reporters Saturday, just hours after Tehran's top security official, Ali Larijani, said that plans for diplomatic talks were under way.
Last month, Trump repeatedly threatened military intervention in Iran following a deadly crackdown on antigovernment protesters. Indeed, U.S. forces -- including an aircraft carrier and its accompanying warships -- were dispatched toward the Gulf region last week.
Had Iran responded by blocking shipments of oil through the Strait of Hormuz to the Indian Ocean, that would likely have sent prices soaring.
On Sunday, OPEC+ said it had decided to leave production levels unchanged for March, extending a three-month supply freeze.
The cartel's move to keep output steady, and in line with expectations, looks set to support downward pressure on oil prices.
Write to Alex Kozul-Wright at alexander.kozul-wright@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
February 02, 2026 07:17 ET (12:17 GMT)
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