Oil Prices Fall Over 1% After US-Iran Talks Announced

Brent crude and WTI prices drop as diplomatic efforts aim to ease supply concerns in the Middle East.

Published on Feb. 5, 2026

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Oil prices fell more than 1% on Thursday, with Brent crude futures down 86 cents to $68.60 per barrel and U.S. West Texas Intermediate crude down 82 cents to $64.32. The declines came after the U.S. and Iran agreed to hold talks in Oman on Friday, easing concerns over potential supply disruptions in the Middle East. However, analysts warned that prices could quickly rebound if the talks fail to produce a diplomatic breakthrough.

Why it matters

The Middle East is a critical region for global oil supply, with about a fifth of the world's total oil consumption passing through the Strait of Hormuz between Oman and Iran. Any tensions or disruptions in the region can have a significant impact on oil prices worldwide.

The details

The upcoming talks in Oman come as the U.S. builds up forces in the Middle East and regional players seek to avoid a military confrontation that could escalate into a wider war. Analysts say the market will likely remain volatile ahead of the meeting, with hopes of a diplomatic breakthrough, but also the risk of prices spiking if the talks break down.

  • The U.S. and Iran agreed to hold talks in Oman on Friday, February 6, 2026.
  • Oil prices fell more than 1% on Thursday, February 5, 2026.

The players

Brent Crude Futures

The global benchmark for crude oil prices.

U.S. West Texas Intermediate (WTI) Crude

The main U.S. benchmark for crude oil prices.

United States

A major global oil consumer and producer that is building up forces in the Middle East.

Iran

A major oil producer in the Middle East that is involved in tensions with the U.S.

Oman

A country in the Middle East where the U.S. and Iran have agreed to hold talks.

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What they’re saying

“However, there will be no comfort as such in prices, for one untoward remark or a breakdown in talks and the Brent price will soon be banging on the door of $70 a barrel and looking at year-to-date highs.”

— John Evans, Analyst, PVM Oil Associates

What’s next

The outcome of the talks between the U.S. and Iran in Oman on Friday will be closely watched by the oil markets, as it could have a significant impact on crude prices going forward.

The takeaway

The volatility in oil prices underscores the geopolitical risks in the Middle East and the importance of diplomatic efforts to ease tensions and maintain stable energy supplies. The upcoming talks in Oman will be a crucial test of whether the U.S. and Iran can find common ground and avoid a potential escalation of the conflict.