Global oil prices declined in Monday trading following reports that the United States and Iran have reached a preliminary agreement aimed at ending the ongoing conflict.
The development marks a significant shift in diplomatic relations after months of tense negotiations, with the deal serving as a foundational step toward a formal peace settlement.
Brent crude and WTI benchmarks softened as market participants adjusted to the reduced likelihood of prolonged supply disruptions.
The price pullback reflects a rapid repricing of geopolitical risk, which had previously supported elevated energy valuations amid fears of sustained shipping interference and production curtailments in the region.
The preliminary accord suggests a de-escalation path that could stabilize energy flows through key chokepoints.
For traders, the move signals a potential unwind of the risk premium that has underpinned oil prices during the height of the crisis.