Brent crude futures have retreated to levels last observed before the outbreak of the Iran war, marking a decisive shift in energy market sentiment.
The decline reflects growing confidence that supply disruptions in the Middle East are abating, outweighing lingering concerns about global demand.
The price action follows confirmation that the United States and Iran have reached a mutual understanding aimed at ending nearly four months of conflict.
This diplomatic breakthrough has rapidly eroded the risk premium that had buoyed crude prices throughout the hostilities.
Traders are now pricing in a steady return of Iranian and regional output to global markets, removing the supply shock that had driven benchmarks higher.
The repricing underscores how quickly energy markets can unwind geopolitical risk when diplomatic channels open.