Brent crude futures softened in early trading, easing 35 cents to settle at $88.87 per barrel.
The modest decline reflects a market recalibration as investors weigh renewed diplomatic engagement between the United States and Iran against the backdrop of continued military friction.
The price action underscores a shifting risk calculus.
While weekend missile exchanges and ongoing Houthi threats to shipping lanes maintain a baseline of geopolitical tension, reports of mediation efforts in Doha have provided a counterweight.
Traders appear to be pricing in a reduced probability of immediate, severe supply disruptions, allowing the risk premium embedded in energy prices to compress slightly.
This development follows a period of heightened volatility driven by fears of broader regional escalation.