Oil holds drop as US and Iran signal progress in nuclear talks

Oil held a decline after positive talks between the US and Iran over the OPEC member’s nuclear program, paring crude’s risk premium.

Global benchnmark Brent was little changed above $67 a barrel after ending almost 2% lower on Tuesday, while West Texas Intermediate was near $62. Tehran said it had reached a “general agreement” with Washington on the terms of a potential deal, while a US official said Iranian negotiators were scheduled to return to Geneva with a new proposal in two weeks.

Crude has pushed higher this year as geopolitical concerns, including the tensions over Iran, outweighed warnings that the global market faces a glut that’ll drag down prices. The standoff in the Islamic Republic — which was rocked by a wave of anti-government protests in January — has fanned concerns among traders that oil output or vital supply routes such as the Strait of Hormuz could be affected if there were military clashes.

US Vice President JD Vance said Tuesday that talks with Iran went well, but the country has not yet acknowledged President Donald Trump’s red lines.

The apparent diplomatic progress came despite growing military deployments. Iran said on Tuesday it would close part of the Strait of Hormuz – the choke point for energy exports from the world’s top oil-producing region – for several hours due to military drills. The US has sent a second aircraft carrier.

Elsewhere, investors were tracking US-brokered negotiations between Ukraine and Russia, which are also taking place in Geneva. Discussions are set to continue on Wednesday, according to an aide to Kyiv’s lead negotiator. Any resolution to Moscow’s invasion of its neighbor may lead to a roll back of sanctions, potentially boosting oil flows to global markets.

Volumes in Asian hours may be lower than usual on Wednesday, with several nations on holiday for the Lunar New Year. These included the trading hub of Singapore and China, the world’s largest oil importer.

© 2026 Bloomberg

Follow Moneyweb’s in-depth finance and business news on WhatsApp here.