Brent crude fell below the $90 per barrel threshold as markets reacted to renewed optimism surrounding US-Iran diplomatic efforts.
The decline marks a significant shift from the elevated risk premium that had supported prices following earlier threats from Tehran regarding shipping routes in the Strait of Hormuz.
Oman’s previous diplomatic opacity regarding Hormuz fees had added to the uncertainty, but the current focus has shifted firmly to the US-Iran dialogue.
The price correction follows reports that indirect negotiations between the United States and Iran in Doha have yielded tangible progress.
This development comes shortly after the conclusion of the first round of talks in Switzerland, which traders viewed as a concrete step toward de-escalation.
The diplomatic momentum has directly impacted energy markets, with Brent crude extending its losses as the perceived likelihood of a supply disruption diminished.
Earlier this month, Iran had warned oil tankers to use approved routes or face a forceful response, a stance that had previously fueled volatility and pushed prices higher. The current diplomatic thaw suggests that the immediate threat to global shipping lanes has receded, allowing the market to reprice the supply risk downward.
Oman’s previous diplomatic opacity regarding Hormuz fees had added to the uncertainty, but the current focus has shifted firmly to the US-Iran dialogue.
The drop in crude prices is part of a broader cross-asset reaction to the easing geopolitical tensions.