Brent crude futures fell below $76 a barrel on Tuesday, marking the first time the benchmark has traded under that threshold since late February, before the outbreak of hostilities between the US, Israel, and Iran.
The decline reflects a significant shift in market sentiment, with traders increasingly pricing in the possibility of Iranian oil returning to global markets.
This move comes amid growing confidence in diplomatic efforts to de-escalate tensions in the Middle East, reducing the immediate risk premium that has supported higher prices since the conflict began.
The drop to a four-month low underscores how quickly geopolitical risk can unwind when diplomatic channels show progress.
Investors are now weighing the potential supply boost from Iran against existing global demand dynamics, leading to a reassessment of near-term price support levels.
Market participants will be watching for further signals from diplomatic negotiations and any official statements regarding Iranian export restrictions.