Brent crude futures fell 24 cents, or 0.28%, to $84.95 a barrel in early trading, reversing a four-day winning streak driven by escalating tensions between the United States and Iran.
The pullback reflects a cautious market recalibration.
While the renewed US strikes on Iranian targets have heightened fears of potential supply disruptions in the Strait of Hormuz, traders are simultaneously weighing the possibility that diplomatic channels remain open.
The price action suggests that the immediate shock of the military escalation is being partially offset by hopes for a negotiated settlement.
This volatility underscores the delicate balance currently pricing into energy markets.
Previous sessions saw crude prices decline as investors focused on the prospect of renewed diplomatic engagement in Doha, following a weekend of missile exchanges.