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Oil Falls as Tehran Signals ‘Guiding Principles’ Understanding in Geneva

Signs of de‑escalation trimmed the geopolitical premium that had supported prices in recent sessions.

Overview

  • Brent slid about 2% to $67.24 and WTI to $62.24, hitting two‑week lows after Iran’s foreign minister said the sides reached an understanding on core principles, while cautioning a deal is not imminent.
  • Earlier gains tied to Iranian naval drills near the Strait of Hormuz and heightened U.S. military posture gave way to losses as traders reassessed near‑term supply risk.
  • OPEC+ is reported to be leaning toward resuming output increases from April, with a March 1 meeting expected to consider adding barrels into peak summer demand.
  • Thin liquidity from Lunar New Year closures in major Asian markets and the U.S. Presidents Day holiday amplified price swings around diplomatic headlines.
  • Citi said near‑term geopolitics may keep prices supported, but successful Iran and RussiaUkraine agreements by summer could pull Brent toward $60–$62.