Brent crude futures fell in Monday trading as geopolitical risk premiums unwound following reports of easing tensions in the Middle East.
The pullback in energy prices reflects a shift in market sentiment, with traders reducing exposure to supply disruption risks as the immediate threat of escalation appears to have subsided.
The decline in oil prices comes as global markets recalibrate ahead of a pivotal week for monetary policy and corporate results.
With the geopolitical overhang lifting, investor focus is now squarely on the Federal Reserve's upcoming interest rate decision, which is expected to provide critical guidance on the trajectory of US borrowing costs.
Simultaneously, the market is bracing for earnings releases from major technology giants, whose financial performance will offer insight into the resilience of corporate demand and the broader economic outlook.
The combination of central bank policy signals and tech sector results is likely to drive volatility across equity and fixed-income markets in the coming days.