COMMODITY
Crude oil futures close lower amid signs of de-escalation of U.S.-Iran conflict
Feb-03-2026

Extending the losses from previous session, Crude oil futures closed lower on Monday as signs of de-escalation of the U.S.-Iran conflict reduced supply-output concerns in the Middle East, taking off the geopolitical risk premium. Last month, U.S. President Donald Trump sent U.S. warships to the Middle East and served an ultimatum to Iran asking the nation to negotiate its nuclear plans with the U.S. or face severe attacks. Trump stated that the fleet was ready to fulfil its mission with violence if necessary. On Monday, Iran's media reported that Iran's President Masoud Pezeshkian has ordered commencing negotiations with the U.S. while a framework for negotiations is getting finalized through regional intermediaries. Besides, a strengthening U.S. dollar value also accelerated the decline in oil prices.

Benchmark crude oil futures for March delivery fell $3.6 or 5.47% to settle at $62.14 a barrel on the New York Mercantile Exchange. Brent crude for April delivery decreased $3.02 or 4.35% to settle at $66.30 a barrel on London's Intercontinental Exchange.

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