Oil Markets Cool as Middle East Tensions Ease and Supply Fears Fade

Easing Middle East tensions and shifting global trade signals cool fears of supply disruption

Global oil prices moved lower as signs of easing geopolitical tensions reduced concerns about supply risks, giving traders and markets some breathing room after weeks of uncertainty. The decline reflects a growing belief that immediate disruptions to oil flows from the Middle East may be avoided, at least for now.

Brent crude slipped toward $67 a barrel, while US benchmark West Texas Intermediate hovered near $63. The drop followed renewed diplomatic engagement between Iran and the United States, with both sides holding talks in Oman aimed at reducing tensions over Iran’s nuclear program. Iranian officials described the discussions as “a step forward,” raising hopes that escalation could be avoided.

The talks come as the US maintains a strong military presence in the region. President Donald Trump said further meetings are planned this week and is also set to meet Israeli Prime Minister Benjamin Netanyahu on February 11. At the same time, Washington is considering new tariffs on countries that continue business ties with Tehran, keeping some uncertainty alive.

Markets are also closely watching India, one of the world’s largest oil importers. Trump stated that India had agreed to stop buying Russian crude as part of a trade deal, although New Delhi has not officially confirmed this, stressing that energy security remains its priority.

“If India stops Russian oil purchases, we would need to see Russian oil discounts widen to attract other buyers,” said Warren Patterson, Head of Commodities Strategy at ING Groep. Failure to find alternatives, he noted, could tighten the global oil balance.

With fresh outlooks expected from OPEC, the International Energy Agency, and US forecasters this week, markets are bracing for clearer signals on where oil prices may head next.