Crude oil prices fell for a third consecutive session, with benchmarks sliding approximately 1% as markets digested reports of diplomatic progress between the United States and Iran.
The sell-off reflects a sustained easing of supply disruption fears linked to the Strait of Hormuz, a critical chokepoint that handles roughly one-fifth of global oil supply.
According to reports from Brecorder and Shafaq News, indirect talks facilitated by Qatar have yielded positive developments.
While no formal agreement was reached during the latest round of negotiations, the constructive tone has been sufficient to calm investor nerves regarding potential shipping bottlenecks or sanctions-related supply shocks in the region.
The price decline marks a reversal of the risk premium that had supported energy markets in recent weeks.
Traders are increasingly pricing in a lower probability of immediate geopolitical escalation, allowing supply concerns to recede from the forefront of market sentiment.