Crude oil futures dropped more than 4% on Friday after reports emerged that China has initiated efforts to restart stalled peace negotiations between the United States and Iran.
The diplomatic push, first cited by Reuters and corroborated by multiple wire services, triggered a rapid unwind of the geopolitical risk premium that has supported energy prices in recent sessions.
3% on June 26 as tanker traffic resumed through the Strait of Hormuz.
Brent crude and West Texas Intermediate (WTI) both sold off sharply in the session.
Despite the steep intraday decline, both benchmarks remained positioned for hefty weekly gains, reflecting the persistent supply-side anxieties that have dominated the market since tensions escalated earlier in the month.
The price action underscores how quickly sentiment can shift when diplomatic channels appear to reopen, even as underlying structural risks remain unresolved.
This development follows a volatile period for energy markets, which saw Brent plunge 4.3% on June 26 as tanker traffic resumed through the Strait of Hormuz.