Global oil prices fell on Monday as diplomatic progress in Switzerland alleviated fears of a sudden supply disruption from Iran.
Tehran announced that it had secured waivers for its oil and petrochemical exports during talks with US officials, a development that directly addresses the primary risk premium embedded in energy markets over the past week.
Brent crude and WTI benchmarks both declined in the session, reversing some of the gains seen during periods of heightened geopolitical tension.
The price action reflects a rapid repricing of supply risk, with traders scaling back hedges against potential export curbs.
The move underscores how sensitive energy markets remain to diplomatic signals, even in the absence of a comprehensive final agreement.
The waivers provide a temporary reprieve for global supply chains, particularly for buyers in Asia and Europe who have been navigating uncertainty around Iranian crude flows.