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Oil Slides 3% as Signals of U.S.–Iran Talks Cool Geopolitical Premium

Fresh signs of engagement between Washington and Tehran trimmed the risk premium.

Overview

  • Brent settled around $67.28 a barrel and WTI near $63.17 after a sharp pullback of roughly 3% in early Monday trade.
  • President Trump said Iran was “seriously talking” with Washington, while Tehran’s security chief Ali Larijani signaled that arrangements for negotiations were underway.
  • Reports indicated the IRGC naval forces had no plans for live‑fire exercises in the Strait of Hormuz, which traders viewed as de‑escalatory.
  • OPEC+ kept March output unchanged, reinforcing views that supply remains comfortable even as recent geopolitical headlines swung prices.
  • A stronger dollar also pressured crude, with analysts noting profit‑taking as the risk premium eased and broader research pointing to a well‑supplied 2026 market.