Oil prices fell sharply on Monday as traders rapidly discounted the prospect of a US-Iran ceasefire, with President Donald Trump preparing to announce a formal agreement.
The initial sell-off in energy markets reflects a swift repricing of geopolitical risk, but the rally is already facing headwinds from mounting skepticism over the deal's durability.
While the White House is framing the development as a decisive diplomatic victory, analysts warn that the agreement lacks clear verification mechanisms and Tehran's position remains ambiguous.
Regional experts note that Iranian officials have not formally confirmed the terms, and historical precedents suggest that hastily negotiated truces in the region often fracture under pressure.
The market's initial optimism is therefore being weighed against the risk that the ceasefire could unravel before implementation.
Traders are now closely monitoring for official statements from both capitals.