Global oil prices extended their decline on Thursday, with Brent crude falling to US$70.84 per barrel.
The drop follows reports that indirect negotiations between the United States and Iran in Doha have yielded tangible progress, reducing the premium investors have attached to geopolitical supply risks in the Persian Gulf region.
The sell-off continued into early trade on Monday, as market participants priced in growing optimism that a peace deal between the U.S. and Iran is nearing finalization.
Bloomberg reported that the potential agreement could significantly de-escalate tensions that have weighed on energy markets for months, prompting a broad repricing of risk across the complex.
The shift in sentiment marks a notable reversal from the previous weeks, where fears of renewed conflict or shipping disruptions in the Strait of Hormuz had kept a floor under crude prices.
With diplomatic channels now appearing more active, traders are unwinding hedges and reducing exposure to oil, betting that the immediate threat to global supply chains has diminished.