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Global crude oil prices settled sharply lower on Monday, 2 February, as easing geopolitical tensions surrounding Iran triggered a broad risk-off move across the commodities complex and accelerated fund-driven liquidation.

Brent crude dropped $3.02, or 4.4%, to settle at $66.30 per barrel.

WTI futures slid $3.07, or 4.7%, to $62.14 per barrel.

The sell-off was compounded by a firmer US dollar and a sharp retreat across metals and other risk assets, reinforcing the downward momentum. Market participants said the abrupt reversal marked a decisive shift in near-term sentiment, with prices giving back much of the geopolitical risk premium built in earlier.

Iran and the US are set to resume nuclear talks on Friday, according to officials cited by Reuters, easing concerns over immediate supply disruptions. In the absence of a fresh supply shock, traders said the market is recalibrating after pricing in near-term risks that failed to materialise.

Industry sources warned that prices at current levels could prompt fresh selling by trend-following commodity trading advisors, adding to downside pressure. Further liquidation is expected if Brent slips below the $65/barrel threshold, where substantial options open interest could intensify volatility and exacerbate price swings.

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