Oil prices remained flat at $67.65 a barrel as geopolitical tensions between the U.S. and Iran dominated market sentiment. Rangebound trading in Asia was tempered by U.S. and Chinese market holidays, while Japan’s Q4 GDP contraction (-0.2%) raised demand concerns. U.S.-Iran nuclear negotiations resumed in Switzerland this week, with Tehran signaling openness to compromising its nuclear program for sanctions relief. However, Washington’s deployment of a second aircraft carrier to the Middle East underscored military readiness if talks stall. OPEC+ plans to restart production increases from April, per Reuters, aiming to capitalize on higher crude prices despite lingering fears of a 2026 supply glut.

The cartel’s March 1 meeting will determine whether to accelerate output, balancing short-term gains against long-term market stability. Risk premiums persisted due to unresolved Middle East tensions, though analysts noted oil’s resilience amid stronger-than-expected global economic data. Prices had surged to a six-month high earlier this year on escalating Iran-U.S. hostilities, though OPEC+’s production strategy offers mixed signals for near-term volatility.