Oil prices fall back as 'hopeful' Tehran responds to Trump

Oil prices had earlier risen after Trump ramped up threats towards Iran, a large crude producer, but Iranian Foreign Minister Abbas Araghchi "a new window of opportunity has opened".

• Oil prices drop as Iran signals hope in nuclear talks with US
• Wall Street fluctuates; European stocks close higher
• Bayer shares jump after Monsanto proposes $7.25B settlement

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Shares vacillated and oil prices dropped back down Tuesday as Tehran gave an encouraging response during talks with US officials in Geneva on Iran's nuclear programme, after days of escalating rhetoric from President Donald Trump.

Oil prices had earlier risen after Trump ramped up threats towards Iran, a large crude producer, but Iranian Foreign Minister Abbas Araghchi said "a new window of opportunity has opened."

"We are hopeful that negotiation will lead to a sustainable and negotiated solution," he said, though he added that "Iran remains fully prepared to defend itself against any threat or act of aggression."

West Texas Intermediate was down 0.9 percent at $62.33 per barrel after earlier rising 1.5 percent, while international benchmark Brent North Sea Crude slipped 1.8 percent to $67.42.

"There's speculation that Iran could agree to dilute its most highly enriched uranium in exchange for the full lifting of financial sanctions, but it's not clear if that will be enough to seal a deal between the two parties," said Aarin Chiekrie, analyst at Hargreaves Lansdown.

Wall Street was vacillating earlier in the session but eventually closed marginally higher.

"Insurance brokers, wealth advisors, real estate services, and logistics were all in the firing line last week, and investors are cautiously watching for what slice of the market could be next on the AI hit list," Chiekrie added.

European stocks closed in the green with London and Frankfurt adding 0.8 percent, while Tokyo retreated and Chinese markets were again shut for the Lunar New Year.

Official data showed UK unemployment rising to a five-year high, and analysts said the reading of 5.2 percent for the final quarter of last year increased the likelihood of the Bank of England cutting its benchmark interest rate next month.

The greenback fell against the yen.

Europe's biggest economy Germany is unlikely to rebound in 2026 as geopolitical uncertainty, high costs and weak domestic demand weigh on growth, the country's Chamber of Industry and Commerce said Tuesday.

Germany returned to weak growth in 2025 after two years of recession.

Shares in German agrochemical giant Bayer rose almost eight percent, meanwhile, as it revealed subsidiary Monsanto had proposed a class settlement of up to $7.25 billion to settle claims that the Roundup weedkiller causes blood cancer, potentially drawing a line under years of costly litigation.