Global crude oil benchmarks continued their downward trajectory, with Brent and WTI sliding nearly 2% as market participants shifted focus from immediate geopolitical flashpoints to the broader supply outlook.
The decline marks a continuation of the recent selling pressure that has weighed on energy markets, driven by a reassessment of risk premiums tied to Middle East tensions.
The price action reflects a growing consensus among traders that the immediate threat of supply disruption is receding.
Reports indicate that indirect negotiations between the United States and Iran in Doha have yielded tangible progress, further dampening the geopolitical risk premium that had previously supported higher prices.
As diplomatic channels remain open, the market is increasingly pricing in a scenario where Iranian oil flows remain uninterrupted or are restored more quickly than previously feared.
This shift in sentiment has allowed fundamental supply concerns to dominate the narrative.