Oil Slides as US–Iran Tensions Show Signs of Easing; Gold and Silver Extend Losses

PUKMEDIA

Gold, silver and oil prices

Oil prices fell sharply on Monday, 2 February 2026, after comments by US President Donald Trump suggested a possible easing of tensions with Iran, raising hopes of de-escalation involving the OPEC member. Precious metals also extended their recent losses, pressured by a stronger US dollar and shifting expectations around US interest rates.

Brent crude futures dropped by around $2, or 2.9%, to $67.28 a barrel by 01:00 GMT, while US West Texas Intermediate (WTI) crude fell $2, or 3.1%, to $63.17 a barrel.

The declines followed strong gains in the previous session, during which Brent touched a six-month high and WTI traded close to its highest level since late September, driven by heightened geopolitical tensions between Washington and Tehran.

Market sentiment shifted over the weekend after Trump said Iran was engaged in “serious talks” with the United States. Additional reports that Iran’s Revolutionary Guard navy was not planning live-fire drills in the Strait of Hormuz further eased concerns over potential supply disruptions.

Tony Sycamore, a market analyst at IG, said the developments were seen as encouraging by traders. “The crude market views this as a meaningful de-escalation,” he said, adding that reduced geopolitical risk had removed the premium that fuelled last week’s rally and prompted widespread profit-taking.

Oil prices were also influenced by OPEC+’s decision on Sunday to keep production levels unchanged in March. The group had already delayed plans to raise output between January and March 2026, citing weak seasonal demand.

Meanwhile, gold prices continued to retreat as the dollar strengthened and investors awaited signals from Kevin Warsh, President Trump’s nominee for chair of the Federal Reserve, on the future path of interest rates.

Spot gold fell 5.01% to $4,649.18 an ounce by 03:11 GMT, while US gold futures for February delivery declined 2.31% to $4,635.30 an ounce. The metal had reached a record high of $5,594.82 last Thursday.

Silver extended its sharp downturn, sliding more than 10% to $76.04 an ounce, after having touched an all-time high of $121.64 last week. Platinum also came under pressure, falling 6.07% in spot trading to $2,065.79 an ounce, following a record peak of $2,918.80 on 26 January.

Daniel Albanna, a financial markets analyst at First Financial Markets, said the sell-off in precious metals went beyond normal profit-taking. He attributed the sharp reversal to what he described as an “unsustainable vertical rally”, noting that gold had surged by more than $400 in a single day, leaving market participants little time to manage risk.


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