Oil Prices Stabilize Following Iran-US Meeting in Oman: What This Means for Investors and Businesses
MUSCAT: Oil prices remained near two-month highs on Friday as traders assessed the initial outcomes of the Iran–United States talks held in Muscat. While the market showed cautious optimism, there was little conviction that geopolitical tensions have significantly eased.
Omani energy analyst Ali al Riyami explained that the generally positive tone following the discussions helped reduce the geopolitical “risk premium” previously factored into crude prices, allowing them to align more closely with fundamental market forces. Nonetheless, investors remain wary, balancing this optimism against conflicting signals regarding the broader security environment.
According to Reuters, Brent crude closed at $68.05 per barrel, while US West Texas Intermediate ended at $63.55, reversing earlier declines during US trading hours.
Al Riyami noted that despite encouraging public statements from Omani and Iranian officials, the market had anticipated a more substantial breakthrough. He highlighted recent developments perceived negatively by traders, including renewed US advisories for American citizens to leave Iran when safe to do so.
Additionally, reports of increased military alertness in the Gulf region—such as prior recommendations for some personnel to evacuate Al Udeid Air Base—have dampened investor confidence and contributed to sustained price volatility.
Given that about 20% of global oil consumption passes through the Strait of Hormuz, Al Riyami emphasized that the future trajectory depends largely on the progress of diplomatic efforts. A sustained de-escalation and durable agreement could lead to price stabilization or declines, while renewed confrontations—particularly those threatening critical shipping lanes—could trigger sharp spikes in crude prices, with immediate impacts on neighboring economies.
Al Riyami suggested that clearer market direction might become apparent as US trading sessions conclude on Friday and global markets reopen on Monday, February 9, 2026.
Special Analysis by Omanet | Navigate Oman’s Market
The ongoing Iran-US talks in Muscat have temporarily eased geopolitical risk premiums, but persistent regional uncertainties keep oil price volatility high, impacting market stability. For businesses in Oman, this means preparedness for fluctuating energy costs and cautious investment in oil-dependent sectors is critical. Smart investors should monitor diplomatic progress closely, as a durable de-escalation could stabilize prices, while renewed conflict risks sharp price spikes and supply disruptions, especially affecting trade routes through the Strait of Hormuz.
