Oil prices drop as US-Iran relations show signs of warming

Have you noticed gas prices creeping up lately? Well, they might ease off soon. Oil prices dropped almost 5% on February 2, 2026, after word got out that the US and Iran are finally chatting about cooling things down. It's a big shift from last week's worries about possible strikes.

Tensions between Washington and Tehran have been simmering for months, especially over Iran's nuclear program. Last week, oil hit six-month highs, Brent crude topped $70 a barrel because folks feared the US might hit Iran hard, maybe even messing with the Strait of Hormuz, that key shipping lane in the Middle East.

President Donald Trump sparked the sell-off over the weekend when he mentioned Iran was getting serious about talks. Then, Iran's security chief, Ali Larijani, chimed in, saying they're setting up negotiations. No wonder traders hit the brakes.

This matters to everyone, not just big oil folks. When prices spike, it hits truckers, airlines, and yeah, your next fill-up at the pump. OPEC+ convened on February 1 and decided to maintain steady production levels amid the ongoing turmoil. Analysts say it's a bearish market anyway, with plenty of supply out there.

So, Brent fell to about $66 a barrel, and US crude to $62. If talks stick, we could see steadier prices ahead.

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