Global oil markets are undergoing a rapid repricing following confirmation that the United States and Iran have reached a mutual understanding agreement.
The deal, which aims to end nearly four months of conflict in the Middle East, has immediately removed a significant portion of the geopolitical risk premium that had been supporting crude prices.
Pakistan, acting as the intermediary, confirmed the development on Sunday evening, setting the stage for Monday's market reaction.
Asian stock markets rallied on the news, while oil prices fell sharply as traders adjusted to the prospect of stabilized supply routes.
The sudden de-escalation marks a stark reversal from the heightened tensions that had driven energy costs higher in recent weeks.
Investors are now recalibrating exposure to Middle East-related risks, with the immediate focus shifting from supply disruption fears to the mechanics of the ceasefire implementation.