Oil prices declined in early trading as renewed diplomatic engagement between the United States and Iran alleviated concerns over potential supply disruptions.
The market move follows reports that direct talks are underway, signaling a de-escalation of tensions that had previously weighed heavily on energy markets.
Brent crude and WTI futures softened as traders adjusted positions to reflect the lower geopolitical risk.
The dollar remained stable during the session, suggesting the oil price movement was driven primarily by supply-side sentiment rather than currency fluctuations.
This repricing marks a shift from the volatility seen in recent weeks, where fears of conflict had pushed prices higher.
The development comes after previous negotiation efforts had stalled, keeping a premium on oil prices.