Crude Oil Prices Ease on Feb 19 After Sharp Rally as U.S.-Iran Tensions Remain in Focus

Crude oil prices slipped slightly in early Asian trading on Thursday, following a sharp rally in the previous session. Brent crude futures fell 12 cents, or 0.2%, to $70.23 a barrel by 0110 GMT (6:40 AM), while U.S. West Texas Intermediate (WTI) crude declined 8 cents, or 0.1%, to $65.11 a barrel.

The modest pullback came after both benchmarks surged more than 4% on Wednesday, marking their highest settlement levels since January 30. The rally was driven by renewed concerns over potential supply disruptions amid rising geopolitical tensions.

However, as of 7:55 AM, WTI crude traded at $65.32, up 0.20%, Brent crude at $70.45, up 0.14%, and Murban crude at $70.92, gaining 0.27%, indicating continued volatility in energy markets.

U.S.-Iran Talks and Regional Tensions

Investor sentiment remains sensitive to developments between the U.S. and Iran. While some progress was reported in talks held in Geneva this week, key differences remain unresolved. The White House indicated that Iran is expected to return with further details in the coming weeks, suggesting that negotiations are ongoing but fragile.

Adding to market unease, Iran issued a Notice to Airmen (NOTAM) announcing planned rocket launches in southern regions between 0330 GMT and 1330 GMT. The notice, published via the U.S. Federal Aviation Administration website, highlights continued military activity in a region critical to global oil supply.

The Middle East remains a key oil-producing hub, and any escalation in tensions could disrupt exports, tighten global supply, and drive prices higher.

Focus Shifts to U.S. Inventory Data

Traders are also awaiting official U.S. oil inventory data from the Energy Information Administration (EIA), scheduled for release later on Thursday. Inventory levels often provide insight into demand trends and supply conditions in the world’s largest oil consumer.

A significant drawdown could support prices, while a surprise build may limit further upside momentum.

Also Read: Best PSU Stocks in India in February 2026!

Conclusion

Crude oil markets remain highly sensitive to geopolitical developments and supply risks. Although prices eased slightly after a sharp rally, underlying tensions between the U.S. and Iran continue to support elevated risk premiums. With diplomatic talks ongoing and inventory data pending, crude prices are likely to remain volatile in the near term as traders closely monitor both political signals and supply fundamentals.

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