Oil Prices Drop as US and Iran Resume Nuclear Talks

Oil prices fell between 3% and 5% on February 2, 2026, following signals of diplomatic de-escalation between the United States and Iran. Donald Trump stated over the weekend that Iran was engaging in serious talks with Washington, shortly after Iranian security official Ali Larijani confirmed that arrangements for negotiations were underway. The two nations are scheduled to resume nuclear talks on Friday.

This shift follows a period of heightened tension throughout January, during which Trump threatened military intervention regarding Iran's nuclear program and its treatment of protesters.

Additional downward pressure on oil prices stemmed from a stronger U.S. dollar following the nomination of Kevin Warsh as Federal Reserve chair and forecasts of milder U.S. weather reducing diesel demand. Separately, OPEC+ agreed during a Sunday meeting to maintain unchanged oil output for March.