Economy February 4, 2026

U.S. and Iran Set for Nuclear Talks in Muscat After Regional Pressure

Meeting in Oman confirmed by Iranian foreign minister as markets react to renewed diplomacy amid tensions

By Caleb Monroe
U.S. and Iran Set for Nuclear Talks in Muscat After Regional Pressure

Iranian Foreign Minister Seyed Araghchi confirmed that nuclear talks between Iran and the United States will take place in Muscat on Friday at around 10 a.m., with Oman facilitating arrangements. The meeting was shifted from Istanbul after Iran requested a venue change and a stricter, bilateral focus on nuclear issues. U.S. officials initially resisted the relocation but agreed to proceed following urgent appeals from multiple Middle Eastern governments. The announcement prompted short-term market moves, including an initial jump in oil prices that later eased.

Key Points

  • Iran confirmed nuclear talks with the U.S. will take place in Muscat on Friday at around 10 a.m., according to Iranian Foreign Minister Seyed Araghchi.
  • The meeting was relocated from Istanbul after Iran requested the change and sought a strictly bilateral, nuclear-only agenda; U.S. officials initially declined the shift but reversed course following urgent lobbying from at least nine Middle Eastern countries.
  • Markets reacted to the announcement, with oil prices initially rising before retreating, indicating energy and financial asset sensitivity to developments in regional diplomacy.

Iran and the United States are scheduled to meet for nuclear discussions in Muscat, Oman, on Friday, Iranian Foreign Minister Seyed Araghchi said in a post on X. "Nuclear talks with the United States are scheduled to be held in Muscat on about 10 am Friday. Im grateful to our Omani brothers for making all necessary arrangements," Araghchi wrote.

The meetings logistics were uncertain earlier in the week after Iran sought to move the talks from Istanbul to Oman and asked that the sessions be strictly bilateral and limited to nuclear matters, excluding other topics such as missiles. U.S. officials initially pushed back against the change of venue.

That stance shifted following urgent representations from regional governments. At least nine Middle Eastern countries lobbied Washington to keep the meeting on the calendar, concerned that canceling the talks could raise the risk of military action by President Trump. One U.S. official said, "They asked us to keep the meeting and listen to what the Iranians have to say. We have told the Arabs that we will do the meeting if they insist. But we are very skeptical."

A second U.S. official said the administration agreed to the Muscat meeting "to be respectful" to regional allies and "in order to continue pursuing the diplomatic track."

The announcement produced immediate moves in financial markets. Various assets experienced volatility, with oil prices initially spiking on the news before trimming gains later in the day.

This development leaves several variables in play: the agreed venue and the narrower agenda reflect Irans negotiating priorities, while the U.S. decision to proceed illustrates the influence of allied governments in shaping diplomatic options. Market reactions underscored how sensitive energy and financial markets remain to shifts in regional diplomacy and perceived risks.


Note: Reporting is limited to the information released by Iranian officials and statements from U.S. officials referenced in available accounts. No additional details about participants, agenda items beyond the nuclear focus, or outcomes were provided.

Risks

  • Potential for renewed regional tension if talks fail to proceed constructively - this uncertainty particularly affects the energy sector and oil prices.
  • Skepticism among U.S. officials about the talks likely prospects could limit the diplomatic tracks effectiveness, impacting investor sentiment across financial markets.
  • The situation remains dependent on the limited information released so far about agenda narrowing and venue change, creating informational uncertainty for markets and businesses with exposure to the region.

More from Economy

Trump Predicts the Fed Will Cut Rates, Says Nominee Kevin Warsh Shares His Leaning Feb 4, 2026 Senate Banking Chair Defends Powell Against Criminal Claims as Nomination Faces Block Feb 4, 2026 Treasury Secretary Bessent Recants Earlier Claim That Tariffs Are Inflationary Feb 4, 2026 U.S. Seeks Minimum Prices for Critical Minerals in Talks with Mexico, EU and Japan Feb 4, 2026 Bessent Defends Fed Independence, Flags Stablecoins as Potential Treasury Tool Feb 4, 2026