Crude oil benchmarks reversed their earlier gains on Sunday, sliding back toward four-month lows as traders weighed conflicting signals from the Middle East.
The sell-off followed reports that the United States and Iran have reached an agreement to halt mutual attacks, a development that significantly reduces the immediate threat of a prolonged supply disruption in the Persian Gulf.
Earlier in the session, Brent crude had jumped nearly 2% after news emerged that a super-tanker carrying Qatari oil was struck near the Strait of Hormuz.
The price action underscores the market's sensitivity to geopolitical headlines.
Earlier in the session, Brent crude had jumped nearly 2% after news emerged that a super-tanker carrying Qatari oil was struck near the Strait of Hormuz.
However, the prospect of a diplomatic resolution quickly eroded the risk premium, with prices retreating as investors assessed the likelihood of sustained shipping interruptions.
This volatility highlights the fragile balance between escalating tensions and diplomatic efforts in the region.