Oil prices remained stable on Tuesday as market participants considered the potential for a reduction in U.S.-Iran tensions, while a stronger dollar constrained upward movement. Brent crude futures experienced an increase of 6 cents, representing a 0.1% rise, reaching $66.36 per barrel as of 0102. U.S. West Texas Intermediate crude was priced at $62.24 per barrel, reflecting an increase of 0.2%. Oil prices experienced a decline of over 4% on Monday following remarks from U.S. President Donald Trump, who indicated that Iran was “seriously talking” with Washington, suggesting a potential easing of tensions with the OPEC member.

Officials from both Iran and the U.S. indicated on Monday that nuclear talks are set to resume on Friday in Turkey. Meanwhile, Trump cautioned that the deployment of significant U.S. warships towards Iran could lead to adverse outcomes if an agreement is not achieved. The U.S. dollar index remained constrained, trading close to a peak not seen in over a week. A stronger greenback negatively impacts demand for dollar-denominated crude from foreign buyers. On the trade front, Trump on Monday unveiled a deal with India that reduces U.S. tariffs on Indian goods to 18% from 50% in return for India ceasing Russian oil purchases and lowering trade barriers.

Trump disclosed the agreement on social media after a conversation with Indian Prime Minister Narendra Modi, highlighting that India had consented to purchase oil from the U.S. and potentially Venezuela. Recently, India has begun to reduce its imports from Russia. In January, they were approximately 1.2 million barrels per day and are expected to decrease to about 1 million bpd in February and 800,000 bpd in March, as reported.

OPEC+ has decided to maintain its oil production levels for March, as announced by the group on Sunday. The eight members—Saudi Arabia, Russia, the United Arab Emirates, Kazakhstan, Kuwait, Iraq, Algeria, and Oman—have increased production quotas by approximately 2.9 million barrels per day from April to December 2025, which constitutes around 3% of global demand.