Oil Prices Rise as Trump Sets Deadline for Iran Nuclear Deal
Oil prices edged higher on Friday, February 20, 2026, as U.S. President Donald Trump warned Iran of “really bad things” if a deal regarding its nuclear program isn’t reached within the next 10 to 15 days. The heightened geopolitical tensions are fueling concerns about potential supply disruptions in the Middle East.
Trump’s Ultimatum and Geopolitical Tensions
Speaking at the first meeting of his Board of Peace in Washington on Thursday, February 19, 2026, President Trump issued a stark warning to Iran. He stated that if Tehran fails to reach a “meaningful deal” over its nuclear program, negative consequences will follow. CNBC reports that the world will likely learn within the next 10 days whether the U.S. Will reach an agreement with Iran or accept military action.
Oil Market Response
International benchmark Brent crude futures with April delivery traded 0.7% lower at $71.17 per barrel around 10:25 a.m. London time (5:25 a.m. ET) on February 20, 2026, erasing earlier gains. U.S. West Texas Intermediate futures with March delivery stood 0.6% lower at $66.02. Both contracts had reached six-month highs in the previous session as investors monitored the escalating risks to oil supply.
Prior to the slight dip on Friday, oil prices had been climbing. WHTC reported on February 19, 2026, that Brent futures climbed 23 cents, or 0.3%, to $70.58 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 25 cents, or 0.4%, to trade at $65.44 a barrel. Both benchmarks settled more than 4% higher on Wednesday, marking their highest settlements since January 30, 2026.
U.S.-Iran Talks and Concerns Over Supply Disruptions
The U.S. And Iran have been engaged in talks in Switzerland this week, attempting to resolve a standoff over Tehran’s nuclear program. Initial reports of progress were overshadowed by accusations from Washington that Iran had not adequately addressed core U.S. Demands. Analysts at ING noted that the primary concern for oil markets is the potential disruption to oil supply, not only from Iran but also broader Persian Gulf oil flows, particularly through the Strait of Hormuz.
Iranian state media reported a temporary shutdown of the Strait of Hormuz on Tuesday, February 18, 2026, raising concerns about a potential blockade of this vital oil route, through which approximately 20% of the world’s oil supply passes.
Market Outlook
Despite the heightened tensions, some analysts believe that a full-scale armed conflict is unlikely. Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, suggests that President Trump does not desire a significant increase in crude prices and that any military action would likely be limited to short-term air strikes.
Oil prices were also higher on Thursday, February 19, 2026, as the U.S. And Iran attempted to ease a standoff in talks over Tehran’s nuclear programme while both sides heightened military activity in the key oil-producing region.
Recent Developments
On Wednesday, February 18, 2026, oil prices jumped 5% after U.S. Strikes on Iran sparked fears Tehran could close the Strait of Hormuz, a vital oil route.