Global oil benchmarks sold off sharply on Monday following reports that the United States and Iran have reached a framework agreement to end the ongoing conflict.
The diplomatic breakthrough has immediately triggered a repricing of energy risk premiums, with crude prices sliding to multi-week lows as traders anticipate a rapid normalization of Iranian exports.
3 percent to 24,956 points, as investors digested the relief that the geopolitical flashpoint was finally cooling.
Brent crude fell to $83 a barrel, while US light sweet crude (WTI) dropped to $80 a barrel.
The move represents a significant unwinding of the war premium that had accumulated over recent weeks, as the prospect of a ceasefire removes the immediate threat of supply disruptions from the Strait of Hormuz and Iranian production facilities.
The price collapse comes just days after markets were jolted by escalating hostilities and mutual accusations of ceasefire violations between Tehran and Washington.
According to Handelsavisen's archive, the German DAX index had already begun to recover on Monday morning, up 1.3 percent to 24,956 points, as investors digested the relief that the geopolitical flashpoint was finally cooling.