Oil prices were rangebound in Asian trade on Monday, with focus squarely on more dialogue between the U.S. and Iran as markets fretted over potential supply disruptions in the Middle East.
Market holidays in China and the U.S. kept trading volumes dull, while dismal economic growth data from Japan also spurred some concerns over cooling demand.
Brent oil futures for April fell 0.2% to $67.65 a barrel by 21:15 ET (02:15 GMT).
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US, Iran to resume nuclear talks this week U.S. and Iran will hold a second round of talks over Tehran’s nuclear ambitions in Switzerland this week, after the two renewed negotiations earlier in February.
But the renewed dialogue also came as the U.S. deployed a second aircraft carrier to the Middle East, and was seen preparing for a sustained military campaign against Tehran if talks failed.
U.S. President Donald Trump also repeatedly warned Tehran to accept a deal or face more military action.
Iranian ministers told the media over the weekend that the country was ready to compromise on its nuclear programme in return for relief from debilitating U.S. sanctions. They also signaled that it was now up to Washington whether it wanted a deal.
Concerns over Iran lent oil prices some support in recent weeks, as traders priced in a greater risk premium on concerns over renewed hostilities between Tehran and Washington. A renewed conflict is expected to disrupt oil production in Iran.
OPEC+ leaning towards more production hikes- Reuters But oil’s risk premium was in part offset by a Reuters report that the Organization of Petroleum Exporting Countries and allies (OPEC+) planned to resume its oil production increases from April.
An increase in production will allow member states in the cartel to further benefit from a recent increase in crude prices, although any increase in production is also likely to weigh on prices in the long term.
The OPEC+ is set to meet on March 1.
Concerns over a supply glut in 2026 had battered oil markets through 2025. While the OPEC had increased production by some measure through the past year, the cartel was seen pausing its production hikes in December amid persistent concerns over a supply glut.
Still, oil prices rushed to a six-month high in early-2026 on heightened geopolitical tensions in the Middle East, while signs of resilience in the global economy also drove hopes that demand will remain strong.
