Global crude oil prices have reversed recent gains, sliding back toward levels last seen before the outbreak of the Iran conflict.
The sell-off marks a significant shift in market sentiment, as participants digest easing supply concerns and look ahead to potential diplomatic breakthroughs.
Brent crude and US West Texas Intermediate (WTI) both declined sharply in Tuesday trading, extending losses that have persisted throughout the month.
The move underscores a rapid repricing of geopolitical risk premiums, with traders increasingly betting that supply disruptions may be less severe or shorter-lived than initially feared.
The retreat comes as markets await the outcome of upcoming negotiations between the United States and Iran in Doha, Qatar.
Investors are closely watching these talks for any signals of de-escalation that could further alleviate fears of prolonged supply bottlenecks in the Strait of Hormuz and surrounding regions.