Trump optimistic on Iran deal as Tehran reviews talks

Monday 02 February 2026 - 10:20

By: Dakir Madiha

Trump optimistic on Iran deal as Tehran reviews talks

President Donald Trump expressed optimism Sunday about reaching an agreement between the United States and Iran, easing fears of military conflict and driving oil prices down during Monday's trading session.

"I hope we can make a deal," Trump told reporters during a visit to Mar-a-Lago in Florida. "If we can't make a deal, then we'll see if he was right or not," he added, referring to Iranian Supreme Leader Ayatollah Ali Khamenei's warning that any U.S. attack would ignite a regional war.

Iran's Foreign Ministry confirmed Monday it is evaluating diplomatic channels with Washington. "Regional nations are facilitating the exchange of messages. Several points have been shared, and we are assessing the details of each diplomatic initiative, which we hope will yield results soon," spokesperson Esmail Baghaei said at a Tehran press conference.

Oil markets reacted swiftly to signs of de-escalation. Brent crude fell nearly 5% on Monday, its sharpest single-session drop in over six months, while West Texas Intermediate also plunged as traders shed the geopolitical risk premium that had propelled prices to four-month highs in recent weeks. "The crude oil market is interpreting this as an encouraging step back from confrontation, unwinding the geopolitical risk premium baked into last week's rally," said Tony Sycamore, market analyst at IG.

The price slide followed January's surge, fueled by concerns over a U.S. military buildup in the region, including an aircraft carrier group deployment toward the Middle East that raised specters of conflict.

Diplomatic openings have emerged despite persistent hurdles. Iran's top security official Ali Larijani stated Saturday that a negotiation framework is being established, while Foreign Minister Abbas Araghchi told CNN he is "convinced we can reach an agreement" on Tehran's nuclear program.

Key sticking points remain. The U.S. demands Iran halt uranium enrichment, curb its ballistic missile program, and end support for regional proxies. Araghchi dismissed these, insisting talks focus solely on nuclear issues. "Let's not discuss unreachable matters," he urged, calling for negotiators to seize the chance for a "fair and just" deal.

Trump has not backed away from military threats, boasting the U.S. has "the biggest and most powerful ships in the world" positioned near Iran. U.S. Ambassador to NATO Matt Whitaker said the administration issued an "ultimatum" to Tehran and "won't wait forever." These talks follow violent protests in Iran last month, which drew global condemnation and prompted Trump to threaten military action if the regime continues killing demonstrators.