Crude oil prices extended their decline on Monday as traders digested the conclusion of the first round of talks between the United States and Iran in Switzerland.
The diplomatic engagement marks a tangible step in the ongoing efforts to de-escalate tensions in the region, reinforcing market expectations that supply constraints linked to the conflict may ease.
4% to $78.93 per barrel, while West Texas Intermediate (WTI) for August delivery dipped 0.
Brent crude for September delivery fell 1.4% to $78.93 per barrel, while West Texas Intermediate (WTI) for August delivery dipped 0.26% to $65.65.
The sell-off follows a sharp retreat in global benchmarks earlier in the week, which was sparked by reports that Washington and Tehran had reached a preliminary framework agreement to end hostilities.
The market reaction underscores the premium investors have placed on geopolitical risk in energy markets.
With the prospect of a stabilized supply environment, the immediate pressure on oil prices reflects a repricing of the conflict risk that has weighed on benchmarks for months.