Brent crude futures retreated in early Tuesday trading as markets digested the continuation of peace negotiations between the United States and Iran in Switzerland.
The diplomatic engagement signals a tangible path toward de-escalation, prompting traders to reduce exposure to supply disruption risks that have underpinned the oil complex for months.
September Brent contracts fell 0.4% to trade at $77.21 per barrel.
The decline reflects a broadening sell-off in energy markets as the probability of a sustained ceasefire gains traction.
Investors are increasingly pricing in a normalization of shipping routes and export flows, which had been constrained by the nearly four-month conflict.
The retreat follows a sharp drop in prices on Monday, when initial reports of a potential peace agreement triggered a wave of selling.