Global oil prices dropped by approximately 2 percent on Tuesday, February 17, 2026, as diplomatic progress in Geneva eased fears of a major supply disruption in the Middle East. International benchmark Brent crude fell by $1.23 to settle at $67.42 a barrel, while the US West Texas Intermediate (WTI) followed suit by dipping 56 cents to $62.33.
This downward trend emerged after Iranian Foreign Minister Abbas Araghchi announced that negotiators had reached a preliminary understanding on the “guiding principles” for their nuclear dispute, signaling a potential move toward de-escalation.
The market’s bearish reaction reflects a shift in investor focus from military tension to diplomatic resolution, even though a final deal remains far from certain. While tensions briefly spiked following a short-lived military drill by Iran in the Strait of Hormuz—the world’s most critical transit point for 20% of global oil—the quick reopening of the shipping lane reassured traders that energy flows remain secure.
This sense of stability was further reinforced by Iran’s supreme leader, who suggested that while the country remains defiant against external pressure, it is still participating in the Geneva dialogue.
Adding to the price pressure, parallel peace talks between Ukraine and Russia in Geneva have introduced the possibility of Russian oil eventually returning to the mainstream global market. As a top-three global crude producer, Russia’s potential re-integration following a peace resolution could significantly increase global supply and lower prices further.
With the United States actively mediating both sets of talks, analysts suggest that the current market volatility is driven by the hope that diplomacy will soon replace the geopolitical risks that have kept oil prices elevated for the past four years.
 followed suit by dipping 56 cents to $62.33.){kind=link}