Crude oil prices retreated in early trade as markets reacted to fresh reports of progress in peace negotiations between the United States and Iran.
The diplomatic development has accelerated the unwinding of the geopolitical risk premium that has supported energy markets in recent weeks.
Multiple wire services, including TVN24 and SR Ekot, have reported that the latest signals from negotiators suggest a tangible step toward resolving the standoff.
Brent crude fell sharply in the session, extending losses that began after the first round of talks concluded in Switzerland.
The decline reflects a rapid repricing of supply disruption fears as investors assess the likelihood of a stabilized supply environment in the Persian Gulf.
The current move follows a framework agreement announced by President Donald Trump on Friday, which outlined a path toward a broader settlement.
Multiple wire services, including TVN24 and SR Ekot, have reported that the latest signals from negotiators suggest a tangible step toward resolving the standoff.