Crude oil benchmarks have pulled back sharply, with prices falling to levels not seen since the onset of the conflict.
The retreat reflects a rapid shift in market sentiment as diplomatic channels between the United States and Iran show signs of progress, reducing the immediate premium investors had placed on supply disruption risks.
Brent crude futures dropped significantly in early trading, erasing recent gains that had been driven by escalatory rhetoric and fears of shipping disruptions.
The price action suggests that traders are increasingly confident that a diplomatic resolution could stabilize supply routes, particularly through key chokepoints like the Strait of Hormuz.
This repricing marks a decisive reversal from the volatility that characterized the market in recent weeks.
The decline comes after a period of heightened uncertainty, where benchmarks had surged on reports of potential military escalation and sanctions.