Iran’s ‘hopeful’ response to US dialogue eases tensions, reversing earlier oil price spikes and stabilising global markets.
NEW YORK: Oil prices fell on Tuesday as Iran’s response to renewed nuclear talks with the United States eased market fears. Iranian Foreign Minister Abbas Araghchi said “a new window of opportunity has opened” during discussions in Geneva.
“We are hopeful that negotiation will lead to a sustainable and negotiated solution,” Araghchi stated. He added that Iran remains prepared to defend itself against any aggression.
West Texas Intermediate crude dropped 0.9% to $62.33 per barrel after rising 1.5% earlier. The international benchmark Brent North Sea Crude slipped 1.8% to $67.42.
Analyst Aarin Chiekrie of Hargreaves Lansdown noted speculation Iran might dilute enriched uranium for lifted sanctions. He said it remains unclear if this will be enough to finalise a deal.
Wall Street stocks closed marginally higher after a day of vacillation. European markets also finished positively, with London and Frankfurt adding 0.8%.
Tokyo’s market retreated while Chinese exchanges remained closed for the Lunar New Year. The US dollar fell against the Japanese yen.
In the UK, unemployment rose to a five-year high of 5.2% in the final quarter of last year. This data increased expectations of an interest rate cut by the Bank of England next month.
Germany’s Chamber of Industry and Commerce predicted the economy is unlikely to rebound in 2026. It cited geopolitical uncertainty, high costs, and weak domestic demand as persistent weights on growth.
Shares in German firm Bayer rose almost 8% on separate news. Its subsidiary Monsanto proposed a class settlement up to $7.25 billion over Roundup weedkiller cancer claims.
