Crude Oil Prices Fall As US–Iran Tensions Ease And OPEC+ Maintains Output

Crude oil prices fell sharply on Monday after signals of possible de‑escalation between the United States and Iran. The decline followed comments by US President Donald Trump, who stated that Iran was “seriously talking” with Washington over the weekend.

The remarks suggested a cooling of tensions that had recently pushed oil prices to multi‑month highs. Meanwhile, OPEC+ confirmed it would maintain its existing output levels for March, further shaping market expectations.

Price Movements in Brent and WTI Contracts

Brent crude futures dropped $2, or 2.9%, to $67.28 per barrel during early Monday trade. The fall marked a reversal from the previous session, when Brent had touched a six‑month high due to rising geopolitical risks.

US West Texas Intermediate (WTI) crude also declined by $2 to settle at $63.17 per barrel, reflecting similar sentiment in the North American market. Both benchmarks recorded significant intraday losses as traders responded to easing tensions and stable supply conditions.

Geopolitical Developments Influencing Market Trends

The price drop followed weekend comments from President Trump, who had previously threatened intervention if Iran failed to engage on nuclear discussions or halt actions against protesters. On Saturday, Trump told reporters that Iran was “seriously talking” with Washington, indicating progress in diplomatic engagement.

Hours earlier, Ali Larijani, Tehran’s top security official, announced on X that arrangements for negotiations were underway. These developments reduced fears of potential supply disruptions linked to conflict in the region.

OPEC+ Output Decision and Market Implications

OPEC+ agreed during its Sunday meeting to keep oil production unchanged for March. The group had already frozen planned output increases for January through March 2026 due to seasonally weaker consumption.

The decision reinforced expectations of stable supply in the coming months, adding downward pressure on prices. Traders interpreted the unchanged output policy as a continuation of OPEC+’s cautious approach to balancing supply with softer demand conditions.

Recent Highs and Market Correction

Both crude benchmarks had recently surged as tensions between the United States and Iran escalated earlier in the week. Brent had reached its highest level in six months, while WTI was trading near its strongest levels since late September.

The latest diplomatic signals prompted a correction from these elevated levels. The market responded quickly to changes in geopolitical risk, reflecting ongoing sensitivity to developments involving key oil‑producing regions.

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Conclusion

Crude oil prices fell as investors reassessed geopolitical risks following indications of dialogue between the United States and Iran. The decline was further supported by OPEC+’s decision to maintain its production levels for March.

Both Brent and WTI benchmarks retreated from recent highs, showing the market’s rapid adjustment to evolving international and supply‑side factors. The overall trend reflected a combination of easing tensions and steady output expectations.

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