Feb 3(Reuters) – Oil prices held steady on Tuesday as market participants weighed the possibility of a de-escalation in U.S.-Iran tensions, with a ​firmer dollar limiting the upside.

Brent crude futures were up 6 cents, ‌or 0.1%, at $66.36 per barrel at 0102 GMT. U.S. West Texas Intermediate crude was at $62.24 per ‌barrel, up 0.2%.

Oil prices fell more than 4% on Monday after U.S. President Donald Trump said Iran was “seriously talking” with Washington, signaling a de-escalation of tensions with the OPEC member.

Iran and the U.S. are expected to resume nuclear talks on Friday ⁠in Turkey, officials from both ‌sides told Reuters on Monday, and Trump warned that with big U.S. warships heading to Iran, bad things could happen ‍if a deal was not reached.

Limiting the upside, the U.S. dollar index hovered near a high of more than a week. A stronger greenback hurts demand for dollar-denominated crude from ​foreign buyers.

On the trade front, Trump on Monday unveiled a deal with ‌India that slashes U.S. tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil purchases and lowering trade barriers.

Trump announced the deal on social media following a call with Indian Prime Minister Narendra Modi, noting that India had agreed to buy oil from the U.S. and possibly Venezuela.

Recently, ⁠India had started to slow its purchases ​from Russia. In January, they stood at around ​1.2 million barrels per day (bpd) and are projected to decline to about 1 million bpd in February and 800,000 bpd in March, ‍according to a Reuters ⁠report.

OPEC+ agreed to keep its oil output unchanged for March, the group said on Sunday.

The eight members – Saudi Arabia, Russia, the United Arab Emirates, ⁠Kazakhstan, Kuwait, Iraq, Algeria and Oman – raised production quotas by about 2.9 million bpd from ‌April through December 2025, roughly 3% of global demand.

(Reporting by Anushree ‌Mukherjee in Bengaluru; Editing by Thomas Derpinghaus)