LONDON, Feb 20, 2026, 18:57 GMT — Regular session
- Brent slipped 0.27% to $71.47 a barrel in afternoon trading. Even so, prices have climbed roughly 5.3% for the week.
- Traders kept an eye on the U.S.-Iran standoff, with the threat of disruptions in the Strait of Hormuz on their radar.
- Oil swung as a steep drop in U.S. crude inventories clashed with speculation about extra OPEC+ barrels coming in April.
Brent crude futures slipped on Friday, though prices hovered close to six-month peaks with traders watching for any sign the U.S.-Iran standoff might disrupt supplies. Even with the dip, the contract remained on track for its first weekly gain in three weeks.
Timing is key here. The market’s stuck between two poles: either flows continue, or tightening in shipping lanes and insurance quickly pushes up risk premia. Prices are high as it is—now, even minor headlines are shifting larger volumes than usual.
With Brent climbing, more hedging has piled into the front end of the curve. Demand for call options — the contracts letting buyers purchase at a fixed price — has picked up, suggesting some investors are betting on a sharp move higher, not just a slow climb.
Brent slipped 19 cents to $71.47 a barrel, off 0.27% by 1736 GMT. U.S. West Texas Intermediate (WTI) shaved off 14 cents, down 0.21% at $66.29. Still, both contracts are holding onto roughly 5.3% weekly gains.
Phil Flynn, senior analyst at Price Futures Group, summed it up to Reuters: “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.” As for the U.S. Supreme Court’s decision on tariff powers, Flynn said, “didn’t seem to move us too much.” Source
Iran’s foreign minister Abbas Araqchi said a draft counterproposal might be finished in the next two or three days, ready for senior officials to review after this week’s nuclear talks. He also mentioned that more U.S.-Iran discussions could happen in roughly a week.
Iran faces the Arabian Peninsula across the Strait of Hormuz, a vital chokepoint where roughly 20% of the world’s oil supply passes. “We’re waiting for a potential binary outcome,” said Ole Hansen, head of commodity strategy at Saxo Bank, in comments to Reuters. The session, he added, was jittery and moving on headlines.
U.S. crude stockpiles dropped by 9 million barrels last week, according to the most recent data, as both refinery activity and exports picked up. The draw gave oil prices a boost, though traders questioned how sustainable this move might be.
Even so, barrels aren’t in short supply for long. According to a Reuters report out this month, OPEC+ is considering bumping up oil production again starting in April—a move that’s made some traders hesitate before piling into the rally.
Still, that risk isn’t one-sided. Should talks ease tensions, or if shipments stay steady, the geopolitical premium could fade fast. Add in a supply boost from OPEC+ or weaker demand numbers, and it unravels quickly.
Traders are zeroed in on when Iran might unveil its counterproposal, plus any moves in U.S. military stance. Also on their radar: OPEC+ is set to meet March 1.
