Oil Prices Slide as Trump Signals Iran Talks

Investors dial back fears of supply shock after Trump says Iran is "seriously talking" with Washington.

Feb. 1, 2026 at 10:47pm

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Oil prices declined over 4% on Monday as investors dialed back fears of a supply shock after U.S. President Donald Trump said Iran was "seriously talking" with the U.S. over the weekend. Trump's comments signaled a possible easing in tensions between Tehran and Washington, which had raised concerns about potential disruptions to global oil supplies.

Why it matters

Oil prices have been volatile in recent months due to geopolitical tensions between the U.S. and Iran. A potential de-escalation of the conflict could help stabilize oil markets and ease concerns about supply disruptions, which have contributed to higher fuel prices for consumers.

The details

Trump's statements came after Iran's top security official Ali Larijani said preparations for negotiations were underway. The renewed slide in prices follows reports that Washington and Tehran have been communicating through intermediaries, raising hopes that tensions could ease rather than spiral. Experts say the U.S. administration's sensitivity to oil prices ahead of the midterm elections could act as a brake on further escalation.

  • On Saturday, Trump told reporters that Iran was "seriously talking" with the U.S.
  • Last week, the U.S. deployed a "massive Armada" to Iran, raising fears of a confrontation.

The players

Donald Trump

The President of the United States who signaled that Iran was "seriously talking" with Washington over the weekend.

Ali Larijani

Iran's top security official who said preparations for negotiations with the U.S. were underway.

Andy Lipow

The president of Lipow Oil Associates, an energy consulting firm.

Marko Papic

A macro and geopolitical strategist at BCA Research.

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What they’re saying

“The talks are happening at the same time Iran is threatening a regional war should they be attacked, which could lead to substantially higher oil prices, an outcome that the Trump Administration would like to avoid.”

— Andy Lipow, President, Lipow Oil Associates (CNBC)

“I do think that President Trump is concerned that if oil prices go up to, you know, $70-$80, he's going to get even further into a hole ahead of the midterms.”

— Marko Papic, Macro and Geopolitical Strategist, BCA Research (CNBC)

What’s next

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