Global crude oil prices declined in Monday trading as market participants reacted to emerging signs of diplomatic progress between the United States and Iran.
The sell-off reflects a rapid repricing of the geopolitical risk premium that has weighed on energy markets amid fears of potential supply disruptions through the Strait of Hormuz.
Brent and WTI benchmarks both retreated from recent levels as the prospect of renewed conflict diminished.
The price action underscores how sensitive energy markets remain to developments in the Middle East, with traders quickly adjusting positions in response to the shifting diplomatic landscape.
The Strait of Hormuz, a critical chokepoint for global oil shipments, has been a focal point of concern as tensions between the two nations escalated in recent weeks.
The market move follows reports that the US and Iran have reached a preliminary agreement aimed at ending the ongoing conflict.