Brent crude futures are heading for their weakest quarterly performance since 2020, driven by mounting optimism over a comprehensive peace agreement between the United States and Iran.
The benchmark has retreated sharply from recent highs, with August contracts trading near $73.27 a barrel, down 12 cents or 0.16% in early trade.
Brent has dropped below the $76 threshold for the first time since late February, signaling a significant shift in market sentiment regarding Middle East stability.
This marks the third consecutive month of declines for the contract, which expires on Tuesday.
The sell-off reflects a rapid repricing of supply disruption risks that had previously supported higher energy prices.
As markets digest accelerating progress toward a diplomatic resolution, the geopolitical premium embedded in crude valuations is evaporating.
Brent has dropped below the $76 threshold for the first time since late February, signaling a significant shift in market sentiment regarding Middle East stability.