RoydadNaft –  Oil prices remained stable as markets considered the possibility of reduced U.S.-Iran tensions, while a strong dollar prevented further gains.

According to Roydad Naft, Brent crude futures declined by 68 cents, or 1%, to $65.62 per barrel at 09:03 GMT. U.S. WTI crude was at $61.54 per barrel, down 1%.

Oil prices fell more than 4% on Monday after U.S. President Donald Trump stated that Iran was “seriously” negotiating with Washington, signaling a potential de-escalation with the OPEC member.

Iran and the United States are scheduled to resume nuclear talks in Turkey on Friday, with officials from both sides confirming this to Reuters. Trump warned that if no agreement is reached, bad things could happen as large American naval forces move toward Iran.

Meanwhile, the U.S. dollar index fluctuated near its highest level in over a week. A strong dollar reduces demand for dollar-priced crude oil from foreign buyers.

In trade news, Trump announced a deal with India on Monday under which U.S. tariffs on Indian goods will drop from 50% to 18%. In exchange, India has agreed to stop purchasing oil from Russia and to reduce trade barriers.

Trump made the announcement on social media after speaking with Indian Prime Minister Narendra Modi, noting that India has agreed to buy oil from the United States and possibly Venezuela.

India has recently been reducing its purchases from Russia. In January, imports were around 1.2 million barrels per day, and forecasts suggest they will fall to about 1 million barrels in February and 800,000 barrels in March, according to Reuters.

OPEC+ agreed to keep its production quotas unchanged for March, the group announced on Sunday.

Eight members—Saudi Arabia, Russia, the United Arab Emirates, Kazakhstan, Kuwait, Iraq, Algeria, and Oman—increased their production quotas by about 2.9 million barrels per day from April to December 2025, equivalent to roughly 3% of global demand.