Brent crude futures reversed course sharply on Monday, shedding approximately 4% from intraday highs above $91 a barrel.
The pullback followed reports that Iran has confirmed ongoing diplomatic contacts with the United States through mediators, signaling a potential de-escalation in tensions that had previously driven the risk premium higher.
After breaching the $91 threshold earlier in the session, sellers stepped in as the prospect of renewed dialogue between Tehran and Washington alleviated immediate fears of supply disruption.
The price action underscores the market's acute sensitivity to geopolitical developments in the Gulf.
After breaching the $91 threshold earlier in the session, sellers stepped in as the prospect of renewed dialogue between Tehran and Washington alleviated immediate fears of supply disruption.
The move represents a significant intraday swing, erasing gains accumulated on earlier hawkish sentiment.
This volatility continues a turbulent period for energy markets, which have seen Brent fluctuate widely amid the broader conflict involving the US, Israel, and Iran.