Oil prices dropped sharply in early trading as market participants priced in renewed optimism that a peace deal between the U.S. and Iran is nearing finalization.
Reports from multiple media outlets suggest that diplomatic efforts have advanced, reducing concerns over potential disruptions in the Strait of Hormuz.
Brent crude fell by more than 4% in the session, with West Texas Intermediate (WTI) futures also showing a significant decline.
Brent crude fell by more than 4% in the session, with West Texas Intermediate (WTI) futures also showing a significant decline.
The move reflects a shift in risk sentiment, as traders reassess the likelihood of shipping bottlenecks and geopolitical tensions in the region.
The potential agreement, if finalized, could ease long-standing tensions and stabilize energy flows through one of the world's most critical shipping routes.
This development comes amid broader market uncertainty, with energy prices having been volatile due to ongoing geopolitical risks and supply concerns.