Brent crude prices declined in early Monday trading as market participants adjusted their positions following reports of advancing diplomatic talks between the United States and Iran.
The sell-off reflects a rapid repricing of geopolitical risk, with investors scaling back hedges against potential supply disruptions in the Persian Gulf region.
Multiple wire services, including Bloomberg, reported that the potential agreement is nearing finalization, prompting a shift in sentiment across energy markets.
The decline follows a framework agreement announced by President Donald Trump on Friday, which signaled a renewed commitment to resolving longstanding tensions.
Multiple wire services, including Bloomberg, reported that the potential agreement is nearing finalization, prompting a shift in sentiment across energy markets.
The optimism has led to a noticeable reduction in the risk premium that had supported higher oil prices in recent sessions.
This development marks a significant pivot from the previous week's volatility, where fears of escalation had driven prices higher.