Brent crude has fallen below the US$76 per barrel threshold, a level that marks the benchmark price prior to the outbreak of hostilities in Iran.
The decline represents a significant psychological and technical break, as the market digests the fading threat of a broader regional conflict.
The drop follows a sharp reversal of earlier gains, with crude prices shedding nearly 3% in recent trading sessions.
The drop follows a sharp reversal of earlier gains, with crude prices shedding nearly 3% in recent trading sessions.
This move effectively wipes out the supply-risk premium that had been priced into energy markets over the past week, driven by fears of sustained military action and potential disruptions to key shipping routes.
Reports indicate that former U.S. President Donald Trump has signaled hesitancy to resume full-scale military operations against Iran.
This diplomatic shift has alleviated immediate concerns about a prolonged escalation, leading investors to reassess the probability of a major supply shock.