Oil Declines As Iran Says ‘Understanding’ Reached In US Nuclear Negotiation

The second round of indirect negotiations between the United States and Iran concluded in Geneva, Iran’s semi-official Students’ News Agency (ISNA) reported Tuesady. Delegations from both sides left the venue following the talks, however, the Iranian side says it’s ready to stay in Switzerland for days or even weeks if needed, in order to reach a deal and stave off military attack by Washington. Oil is dumping on the following headline issued an hour after conclusion:

IRAN FOREIGN MINISTER SAYS WE HAVE REACHED UNDERSTANDING ON MAIN PRINCIPLES WITH THE US

OIL FUTURES FALL, BRENT DOWN OVER 1%, AFTER IRAN FOREIGN MINISTER COMMENTS ON US-IRAN TALKS

IRAN OFFERS NUCLEAR CONCESSIONS, BUT STOPS SHORT OF ENRICHMENT BAN

US envoy Steve Witkoff and Trump’s son-in-law Jared Kushner represented the US side in the talks, with Trump having told reporters aboard Air Force One that he would “indirectly” participate. Iran’s Foreign Minister Abbas Araghchi is leading the Iranian side.

Iran has insisted on its nuclear program being the sole focus of discussions, and not limitations on its ballistic missile arsenal (as the US and Israel are demanding) – and this holds of the possibility of derailing talks before they get further underway.

In the meantime the temperature is rising in the Gulf region, after Iran’s military announced Tuesday that sections of the Strait of Hormuz would be closed for several hours for what it called “security measures”.

This comes on the second day of IRGC naval drills, which semi-official Fars news agency described as designed to ensure the safety of maritime traffic during a military exercise. Iranian authorities stated the move formed part of the broader drill launched the day earlier.

Oil Prices Rose as Iran Closed Parts of the Strait of Hormuz for Naval Drills… Then Later Dumped After ‘Understanding’ Reached:

Iran’s state broadcaster reported that the “main phase’ of a naval exercise conducted by the Islamic Revolutionary Guard Corps began Tuesday.

Iran tested large missiles in the Persian Gulf on Tuesday, footage shows:

⚡️BREAKING

The Iranian Revolutionary Guards fired Anti-Ship Missiles into the Strait of Hormuz

Parts of the Strait are now closed for military activity pic.twitter.com/ZkJuthNLaD

— Iran Observer (@IranObserver0) February 17, 2026

Supreme Leader Ayatollah Ali Khamenei has warned in a speech before an event Tuesday (and afterward his office posted it to X), the following:

The Americans constantly say that they’ve sent a warship toward Iran. Of course, a warship is a dangerous piece of military hardware. However, more dangerous than that warship is the weapon that can send that warship to the bottom of the sea.

This ‘counter-threat’ and warning was in response to remarks by Trump in which the president said the United States had not been able to destroy the Islamic Republic.

“In one of his recent speeches, the US president said that for 47 years America has not succeeded in destroying the Islamic Republic… I tell you: you will not succeed either,” Khamenei said.

USS Gerald R. Ford now just days away from Mideast waters and entering the eastern Mediterranean…

NEW — 🇺🇸 The U.S. aircraft carrier USS Gerald R. Ford has entered the Strait of Gibraltar and is now heading toward the Mediterranean Sea. pic.twitter.com/avg9IwxzL3

— UK Report (@UK_REPT) February 17, 2026

Trump has also threatened Iran with “traumatic” consequences and has raised the possibility of imposing regime change amid his ratcheting rhetoric, and the deployment of no less than two aircraft carrier groups to regional waters.

“What is not on the table: submission before threats,” Iran FM Araghchi said in a post on Monday, stating that he was in Switzerland “with real ideas to achieve a fair and equitable deal.”