Brent crude futures fell to $88.36 per barrel on Monday, marking the lowest close for the benchmark in seven days.
The decline underscores a sustained shift in market sentiment as investors continue to unwind positions tied to Middle East supply risks.
The drop follows a period of heightened volatility triggered by the US-Iran conflict that began in February.
While prices had previously spiked on fears of shipping disruptions and production outages, the latest session reflects a growing belief that the immediate threat to global oil flows has diminished.
Traders appear to be prioritizing demand concerns and broader macroeconomic headwinds over geopolitical premiums.
This move is part of a broader correction that has seen Brent retreat significantly from its recent peaks.