Iraq's Basrah Heavy crude fell sharply on Tuesday, dropping $2.75 to settle at $47.73 per barrel.
The 5.45% decline mirrors a broader retreat across global energy benchmarks as traders digest the latest geopolitical developments.
The sell-off follows a session on Monday where global oil prices retreated on news of advancing peace negotiations between US and Iranian officials in Switzerland.
The diplomatic progress has alleviated market fears of an abrupt supply disruption from Iran, prompting traders to price in a potential easing of export restrictions.
Tehran recently announced it had secured waivers for its oil and petrochemical exports, a move that has sparked relief across energy markets.
As the risk premium associated with Middle Eastern supply constraints diminishes, regional crudes like Basrah are facing downward pressure alongside international benchmarks.