U.S.-Iran Negotiations Looming Collapse; Oil Prices Surge Amid Geopolitical Tension

U.S.-Iran negotiations, originally scheduled for February 6, 2026, are at risk of collapse after Tehran demanded a bilateral meeting in Oman, not involving Arab states, an arrangement the U.S. refused. U.S. President Trump told NBC News the Iranian supreme leader should be deeply concerned, heightening investor worries over regional escalation and potential supply disruptions. Oil prices jumped in response: West Texas Intermediate futures rose $1.82, or 2.88%, to $65.08 per barrel; Brent crude rose $2.04, or 3.03%, to $69.37 per barrel. The U.S. and Iran disagree on format and agenda items, with the U.S. insisting on discussions on ballistic missiles, regional security, and human rights alongside the nuclear issue. If Tehran reconsiders the original Istanbul format, talks could resume this week or next. The U.S. military has shot down an Iranian unmanned aerial vehicle near the aircraft carrier Abraham Lincoln and reported a smuggling attempt off the Strait of Hormuz. The Iranians characterize the drone as part of routine surveillance and say the actions comply with international law.