LONDON, Feb 20, 2026, 18:57 GMT — Regular session
- Brent was down 0.27% at $71.47 a barrel in afternoon trade, but still up about 5.3% this week.
- Traders tracked the U.S.-Iran standoff and the risk of disruption through the Strait of Hormuz.
- A sharp U.S. crude stock draw and talk of more OPEC+ supply from April pulled the market in opposite directions.
Brent crude futures eased on Friday but stayed near six-month highs, as traders weighed whether the U.S.-Iran confrontation would spill into supply disruptions. The contract was still heading for its first weekly gain in three weeks.
The timing matters because the market is trying to price a “binary” outcome: either flows keep moving, or risk premia build quickly if the standoff tightens shipping lanes and insurance. With prices already elevated, small headlines are moving bigger volumes.
Brent’s rise has also dragged more hedging into the front of the curve. Call options — contracts that give the buyer the right to buy at a set price — have been in heavier demand, a sign some investors are positioning for a jump rather than a drift.
Brent was down 19 cents, or 0.27%, at $71.47 a barrel by 1736 GMT. U.S. West Texas Intermediate (WTI) was down 14 cents, or 0.21%, at $66.29, leaving both benchmarks up about 5.3% on the week.
“We’re caught in between anticipation what’s going to happen with the U.S. and Iran and denial an attack’s going to happen,” Phil Flynn, senior analyst at Price Futures Group, told Reuters. He added that a U.S. Supreme Court ruling on tariff powers “didn’t seem to move us too much.” (Source)
Iran’s foreign minister, Abbas Araqchi, said a draft counterproposal could be ready in the next two or three days for review by top officials, after nuclear talks this week. He also flagged more U.S.-Iran talks as possible in about a week. (Source)
Iran sits across the Strait of Hormuz from the Arabian Peninsula, and about 20% of global oil supply moves through the waterway. “We’re waiting for a potential binary outcome,” Ole Hansen, head of commodity strategy at Saxo Bank, said in comments carried by Reuters, describing a nervous, headline-driven session.
On the supply side, U.S. crude inventories fell by 9 million barrels in the latest weekly report as refinery runs and exports climbed, lending support to prices even as traders debated whether the draw would last. (Source)
Still, the market is not short of barrels for long. A Reuters report this month said OPEC+ was leaning toward resuming oil output increases from April, a prospect that has kept some traders from chasing the rally too hard. (Source)
But the risk runs both ways. If diplomacy cools the standoff, or if physical flows keep proving resilient, the geopolitical premium can drain quickly — especially if OPEC+ supply rises and demand data turns soft.
Next up, traders are watching for the timing and substance of Iran’s counterproposal and any shift in U.S. military posture, alongside OPEC+’s next scheduled meeting on March 1. (Source)
