Oil prices plunge more than four percent after Donald Trump reports talks with Iran
Crude benchmarks fell sharply on February 2 after comments about potential US and Iran talks reduced risk. Markets also reacted to a stronger US dollar.
Insights:
By 1113 GMT on Feb 2, 2026, Brent crude futures were down $3.34, or 4.8%, at $65.98 per barrel, while U.S. West Texas Intermediate (WTI) fell $3.37, or 5.2%, to $61.84 per barrel. The sharp decline followed statements from the President of the 
US, donald trump, who informed reporters that 
IR was seriously talking with Washington. This development reduced the geopolitical risk premium that had been a major driver for the energy sector.
US, donald trump, who informed reporters that IR was seriously talking with Washington. This development reduced the geopolitical risk premium that had been a major driver for the energy sector.In Tehran, the top security official ali larijani noted that arrangements for negotiations were underway. These remarks triggered an immediate reversal for oil benchmarks, which had seen significant gains in January 2026. During that month, Brent gained 16% and WTI rose 13%, marking the largest monthly increases for the commodities since 2022. Analysts from UBS, Phillip Nova, PVM, and Capital Economics monitored the rapid shift in market sentiment as the intraday reversal exceeded 4%.
