Oil prices fell in early trade on Monday as market participants priced in growing optimism that a peace deal between the U.S. and Iran is nearing finalization.
Bloomberg reported that the potential agreement, which could end the two-month-old conflict involving the U.S. and Israel, has brought relief to energy markets that had been bracing for prolonged geopolitical tensions.
Iranian officials are said to be close to finalizing a one-page agreement, according to Axios, which could stabilize regional supply lines and reduce the risk of further disruptions in oil exports.
The news has led to a modest unwind of the premium priced into crude contracts, with Brent and WTI both showing early declines.
Energy traders are now watching for official confirmation of the deal and its potential impact on OPEC+ production dynamics.