Brent crude futures have retreated sharply, approaching levels last seen in early March, as markets digest accelerating progress toward a comprehensive peace agreement between the United States and Iran.
The sell-off reflects a decisive shift in sentiment, with traders rapidly unwinding the supply-risk premium that has underpinned energy prices since the outbreak of hostilities.
The price decline follows reports that US Vice President JD Vance has held extensive discussions with senior Iranian officials, establishing what he described as a 'good foundation' for a final deal.
Compounding the downward pressure, the US administration has moved to waive sanctions on Iranian oil exports, a policy reversal that signals an imminent normalization of trade flows from the region.
According to media reports, these diplomatic and policy steps are part of a broader effort to finalize a settlement that could see Iranian barrels returning to global markets in significant volumes.
This development marks a stark reversal from the recent trading regime, where fears of prolonged conflict and supply disruptions kept Brent well above pre-war averages.