Oil prices steadied in Tuesday trading, remaining under the $80 per barrel threshold following a sharp sell-off on Monday.
The market adjustment comes after the US Treasury Department announced it is temporarily lifting sanctions on Iran.
The regulatory change is designed to allow the country to produce, sell, and deliver crude oil, a move tied to broader diplomatic efforts to end nearly four months of conflict between Washington and Tehran.
The repricing reflects a shift in supply expectations.
With sanctions eased, the immediate risk of prolonged supply disruptions has diminished, prompting traders to unwind risk premiums built into energy contracts.
While prices edged up slightly from Monday's lows, the overall trend remains bearish as markets digest the implications of resumed Iranian exports.