Oil fell as equities dropped on political turmoil in Europe and as the prospect of renewed talks between Western countries and Iran reduced Middle East tension.

Futures slipped as much as 1.7 percent and the euro weakened after Spanish Premier Mariano Rajoy faced opposition calls to resign amid contested reports about illegal payments.

Iran considers an offer by U.S. Vice President Joe Biden to negotiate directly over its nuclear program a “step forward,” Foreign Minister Ali Akbar Salehi said.

Talks to defuse tension over Iran’s nuclear work will be held Feb. 25 in Kazakhstan, Salehi said yesterday at the Munich Security Conference. The U.S. will offer bilateral negotiations if the Islamic republic’s Supreme Leader Ayatollah Ali Khamenei is prepared for “serious” discussions, Biden said the day before at the same event.

Crude oil for March delivery dropped to $96.07 a barrel on the New York Mercantile Exchange. Futures are up 5.2 percent this year.

Brent oil for March settlement fell 61 cents, or 0.5 percent, to $116.15 a barrel on the London-based ICE Futures Europe exchange. The contract settled at $116.76 on Feb. 1, the highest level since Sept. 13. The volume of all contracts traded was 16 percent above the 100-day average.