Oil Slips as US-Iran Nuclear Progress Cuts Supply Risk Premium

Oil prices edged lower after signs of progress in talks between the United States and Iran reduced fears of supply disruption. Benchmark West Texas Intermediate (WTI) slipped to below $63 a barrel. 

Iranian Foreign Minister Abbas Araghchi said the two sides held “serious, constructive” discussions and reached a general agreement on key principles. The news trimmed a risk premium that had pushed prices higher earlier, according to a Bloomberg report.

Crude oil traded at $62.78 per barrel on February 17, 2026, down 0.17% from the previous day. Over the past month, prices have risen 4.02%, but they remain 12.59% lower than a year ago, according to Trading Economics. The data reflects trading in a contract for difference (CFD) that tracks the benchmark crude market. Historically, crude oil reached an all-time high of 410.45 in December 2025.

Strait of Hormuz tensions briefly lifted prices

Earlier gains were triggered after Iran said it would shut parts of the Strait of Hormuz for military drills. The narrow waterway is a vital route for global oil shipments. WTI futures had risen about 1.4% on Monday after Iran launched maritime drills and the United States deployed a second aircraft carrier to the region. However, hopes of diplomatic progress later erased most of those gains.

Investors are closely monitoring a second round of nuclear negotiations in Geneva. Iran has signalled it is ready to compromise on its nuclear programme if US sanctions are lifted. At the same time, US-led negotiations between Russia and Ukraine are set to begin, although markets remain cautious about any quick diplomatic breakthrough.

Another factor limiting oil prices is the possibility that OPEC+ may resume output increases in April. More supply could enter a market already dealing with a growing surplus. Analysts say this supply outlook is balancing geopolitical risks, keeping prices under pressure for now.