Crude oil prices fell in early Monday trade as market participants priced in growing optimism that a peace deal between the United States and Iran is nearing finalization.
The decline follows a framework agreement announced by President Donald Trump on Friday, which has since been cited by brokers as a key driver of the sell-off.
West Texas Intermediate (WTI) futures for August delivery dropped on the New York Mercantile Exchange, reflecting a broader retreat in energy markets.
The move underscores how quickly sentiment can shift when geopolitical risk premiums are unwound.
Traders are increasingly betting that a diplomatic resolution will stabilize supply routes and reduce the likelihood of further disruptions in the Persian Gulf.
The development marks a significant shift from the previous week’s volatility, where fears of escalation had pushed prices higher.