Oil Falls About 1% to Around $71 a Barrel on Iran Nuclear Talks and US Tariff Concerns
Brent slips to $71 a barrel as global growth concerns weigh amid geopolitical and trade developments
US, Feb 23 : Oil prices fell about 1% on Monday as easing tensions over a potential U.S.-Iran conflict were offset by uncertainty stemming from fresh U.S. tariff hikes. Brent crude futures dropped 76 cents, or 1.06%, to $71 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 75 cents, or 1.10%, to $65.75 per barrel.
The market reacted to U.S. President Donald Trump’s decision to raise temporary tariffs from 10% to 15% on imports, following the Supreme Court’s invalidation of his previous tariff programme. Analysts noted that the move increased risk aversion, affecting crude oil prices along with gold and equity futures.
Meanwhile, geopolitical concerns eased as the U.S. and Iran prepare for a third round of nuclear talks in Geneva on Thursday. Iran signaled readiness to make concessions on its nuclear programme in exchange for sanctions relief and recognition of its right to uranium enrichment.
Despite this, experts warn that a U.S. military response could maintain an Iran risk premium of around $10 per barrel, preventing a significant drop in crude prices. Goldman Sachs forecast the global oil market will remain in surplus in 2026 but noted that potential sanctions relief for Iran and Russia could increase supply, creating downside risks of $5–$8 to fourth quarter prices.
Market watchers continue to weigh the combined impact of geopolitical developments and trade uncertainties on fuel demand and global growth.
