Oil prices slump on U.S.-Iran talks; OPEC+ holds production

Oil prices fell sharply Monday as geopolitical tensions between the U.S. and Iran eased, prompting traders to lock in profits after a recent jump in prices.

At 08:20 ET (13:20 GMT), Brent oil futures for April tumbled 5.1% to $65.82 a barrel and U.S. West Texas Intermediate crude fell 5.2% to $61.76 per barrel.

Oil prices rose to near six-month highs last week on concerns over more U.S. military action against Iran, while extreme cold weather in North America was also seen disrupting supplies.

The two benchmark contracts posted their biggest monthly increase since 2022 in January.

Trump says Iran ‘seriously talking’ with Washington 

U.S. President Donald Trump said over the weekend that Iran was “seriously talking” to his administration, comments that came shortly after Iranian officials said they were arranging for negotiations with the United States.

Trump had repeatedly threatened Iran with military action over a nuclear deal and ongoing protests in the country. He had also deployed a naval fleet to the Middle East.

This act ramped up concerns over fresh U.S. strikes against Iran, which could spur more geopolitical instability in the Middle East and disrupt oil production in the region. Crude prices had risen sharply as markets priced in a greater risk premium.

“The selloff follows reports of fresh U.S.-Iran negotiations, raising the possibility of a deal and easing geopolitical risk premium. A broader correction across financial markets has added to the downward momentum,” said analysts at ING, in a note.

Recent weather-related disruptions in the U.S. also helped oil rise past concerns over weak global demand and a potential supply glut in 2026