Oil Benchmark Prices Drop Nearly Five Percent After Trump Signals De-escalation with Iran
Oil prices fell nearly 5 percent on Monday as Washington and Tehran signaled potential talks. This erased risk premiums that supported multi-month price highs.
Insights:
On Feb. 2, 2026, global oil prices fell nearly 5 percent on Monday, heading for the steepest single-session decline in more than six months. Brent crude futures were down $3.30, or 4.8%, at $66.02 per barrel at 0528 GMT, while U.S. West Texas Intermediate crude fell $3.23, or nearly 5%, to $61.98 per barrel. The significant pullback follows a period where crude contracts had reached multi-month highs, largely supported by a geopolitical risk premium that began to evaporate during Monday's trading session.
The primary trigger for the sell-off came as United States 
USPresident donald trump stated that Iran 
IRwas seriously talking with the United States, signaling a potential for de-escalation between the two nations. This sentiment was echoed in Tehran (Iran), where the top security official ali larijani noted that arrangements for negotiations were currently underway. Furthermore, reports indicated that the naval forces of the Islamic Revolutionary Guard Corps in Iranhave no plans for live-fire exercises in the Strait of Hormuz, further easing immediate concerns regarding regional stability.
USPresident donald trump stated that Iran IRwas seriously talking with the United States, signaling a potential for de-escalation between the two nations. This sentiment was echoed in Tehran (Iran), where the top security official ali larijani noted that arrangements for negotiations were currently underway. Furthermore, reports indicated that the naval forces of the Islamic Revolutionary Guard Corps in Iranhave no plans for live-fire exercises in the Strait of Hormuz, further easing immediate concerns regarding regional stability.
