Reviewed by Gotrade Internal Analyst
Gotrade News - Global oil prices took a sharp dive on Thursday (05/02) as geopolitical tensions in the Middle East finally started to cool off. The market is reacting positively to the news of a diplomatic meeting scheduled between the US and Iran in Oman.
Key Takeaways
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Brent and WTI crude fell over 2% following the agreement for US-Iran talks.
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Market volatility remains high after prices surged 3% just a day prior.
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Investor focus is shifting from US inventory data to the potential outcome of Friday's meeting.
Brent crude futures slid $1.44, or 2.07%, landing at $68.02 per barrel. Meanwhile, West Texas Intermediate (WTI) also dipped $1.34 to settle at $63.80.
This sell-off was triggered by the confirmed deal to hold direct negotiations in Muscat this Friday (06/02). This diplomatic move is dampening market fears about potential supply disruptions in the vital Middle East region.
According to a report by Reuters, prices actually spiked 3% on Wednesday (04/02) fueled by rumors that the dialogue might collapse. However, officials from both sides stepped in to confirm the meeting is on, even if the agenda isn't fully set yet.
Tony Sycamore, a market analyst at IG, pointed to the uncertainty surrounding these talks as the main driver of this extreme volatility. He notes that the market's panic mode is fading now that nuclear discussions are reportedly back on the table.
Even though the tension has dialed down a bit, the risk of conflict escalating in this oil-rich region hasn't exactly vanished. Investors are still keeping a close watch on potential sanctions or military threats from US President Donald Trump.
On the flip side, US oil stock data actually showed a decline in inventory, which usually pushes prices up. But right now, geopolitical sentiment in the Strait of Hormuz—a chokepoint for global oil—is totally dominating the narrative.
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Reference:
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Qatar News Agency, Oil Prices Fall 2% as Fears of Potential Supply Disruptions Ease. Diakses pada 5 Februari 2026
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Reuters, Oil prices fall as U.S., Iran agree to talks, easing conflict concerns. Diakses pada 5 Februari 2026
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