Crude oil futures traded lower on Tuesday morning after reports that the US and Iran would begin talks on Friday.
At 9.56 am on Tuesday, April Brent oil futures were at $66.02, down by 0.42 per cent, and March crude oil futures on WTI (West Texas Intermediate) were at $61.92, down by 0.35 per cent.
February crude oil futures were trading at ₹5603 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹5625, down by 0.39 per cent, and March futures were trading at ₹5598 against the previous close of ₹5607, down by 0.16 per cent.
Quoting Iranian and US officials, a Reuters report said that Iran and the US will resume nuclear talks on Friday in Turkey.
US Special Envoy Steve Witkoff and Iranian Foreign Minister Abbas Araqchi will meet in Istanbul in an effort to revive diplomacy over a long-running dispute about Iran’s nuclear programme and dispel fears of a new regional war, while a regional diplomat said representatives from countries such as Saudi Arabia and Egypt would also participate, it said.
US President Donald Trump warned that with big US warships heading to Iran, bad things would probably happen if a deal could not be reached.
Iran is one of the major producers of crude oil in the world market.
In their Commodities Feed for Tuesday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said oil prices sold off aggressively on Monday with ICE Brent settling 4.36 per cent lower on the day.
This weakness comes as immediate concerns about US military action in Iran have subsided, and negotiations on a nuclear deal appear imminent. Clearly, the market will be closely following these talks, given the risks that will re-emerge if they break down.
The continued recovery in the US dollar on Monday, following Trump’s nomination of Kevin Warsh as the next Federal Reserve chair also exerted downward pressure on oil prices.
Meanwhile, US has announced reduction of tariffs on India. In a post on the social media platform Truth Social, Trump said the US would reduce reciprocal tariff on India from 25 per cent to 18 per cent.
“It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country,” Trump said.
ING Think’s Warren Patterson and Ewa Manthey said the US and India agreed on a trade deal under which the US will lower tariffs on Indian goods from 25 per cent to 18 per cent and remove the additional 25 per cent tariff imposed on India for its purchases of Russian oil.
“If we do see this happen, it will only lead to a further increase in the amount of Russian oil floating at sea. This further pressures the Urals discount to attract buyers. A lack of buyers means Russia would ultimately be forced to reduce output, tightening up the oil market. Indian refiners have already reduced their purchases of Russian oil following US sanctions on Rosneft and Lukoil, and the EU ban on refined product imports made from Russian oil. Indian imports of Russian oil are estimated to be in the region of 1.1-1.2 million barrels a day in January, down from around 1.8 million barrels a day in November 2025,” they said.
February natural gas futures were trading at ₹291.10 on MCX during the initial hour of trading on Tuesday against the previous close of ₹294.90, down by 1.29 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), February guargum contracts were trading at ₹10477 in the initial hour of trading on Tuesday against the previous close of ₹10179, up by 2.93 per cent.
March jeera futures were trading at ₹24150 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹23870, up by 1.17 per cent.
Published on February 3, 2026
