Oil prices fell sharply on Friday as U.S. President Donald Trump announced a framework agreement with Iran, triggering a broad sell-off in crude markets as traders priced in a potential end to Middle East tensions.
The development marks a significant shift in the geopolitical landscape that has kept energy supply disruption fears elevated for weeks.
Brent crude and U.S. West Texas Intermediate futures both dropped in early trading, reflecting the market's immediate reaction to the diplomatic breakthrough.
The selloff underscores how quickly energy valuations can compress when the risk premium attached to regional instability begins to unwind.
The framework deal, as described by the White House, raises hopes that the conflict could be nearing its conclusion.
However, the optimism was tempered by reports that Tehran has already signaled pushback against certain terms, suggesting that the path to a final, ratified agreement remains fraught with diplomatic hurdles.