Brent, WTI Slump 4% as US-Iran Tensions Cool

By Adedapo Adesanya

The two major crude oil grades in the global market fell by more than 4 per cent per barrel on Monday after the most recent tensions between the United States and Iran appeared to have eased.

Brent crude futures went down by $3.02 or 4.4 per cent to settle at $66.30 per barrel, while the US West Texas Intermediate (WTI) crude futures declined by $3.07 or 4.7 per cent to $62.14 per barrel.

Last week, markets reacted to the renewed tension in the world’s most important oil-producing and exporting region, and oil prices soared.

However, this weekend, US President Donald Trump said that he believes Iran is “seriously” talking with the US, adding he hopes that negotiations could lead to an “acceptable” deal with the member of the Organisation of the Petroleum Exporting Countries (OPEC).

Market analysts noted that with the US President facing weak poll numbers, a military escalation that risks pushing petrol prices sharply higher appears unlikely ahead of the November midterm elections.

Prices were also pressured by a stronger US Dollar and milder weather forecasts. The American currency strengthened as currency traders cheered President Trump’s nomination of Kevin Warsh as the next Federal Reserve chair. A stronger Dollar makes oil more expensive for investors using other currencies.

US futures prices for diesel, used in heating and power generation, fell more than 6 per cent triggered by forecasts of milder weather in the US, the world’s largest oil consumer.

OPEC+ agreed to keep its oil output unchanged for March at a meeting, the producer group said on Sunday. The brief meeting reaffirmed that decision for March, after earlier gatherings did the same for January and February.

The eight producers – Saudi Arabia, Russia, the United Arab Emirates, Kazakhstan, Kuwait, Iraq, Algeria and Oman – raised production quotas by about 2.9 million barrels per day from April through December 2025, roughly 3 per cent of global demand.

In November, the group froze further planned increases for January through March 2026 because of seasonally weaker consumption.

Four OPEC+ producers that have been pumping crude above their respective quotas have filed with the OPEC Secretariat updated compensation plans through June 2026, OPEC said on Monday.

The countries: Iraq, the UAE, Kazakhstan, and Oman filed updated plans to compensate for pumping above OPEC+ quotas through June 2026.