Crude oil prices extended their decline for a third consecutive session on Thursday, driven by easing geopolitical tensions and mounting concerns over global supply balance.
Brent crude futures fell 77 cents, or 1.1%, to settle at $70.80 a barrel, marking a sustained sell-off as markets digest the latest diplomatic developments.
The price drop follows reports that indirect talks between the United States and Iran in Doha have made progress.
Qatar confirmed the advancement in negotiations, which has significantly reduced investor fears of a potential supply disruption in the Strait of Hormuz.
As the risk premium associated with Middle Eastern tensions recedes, traders are shifting focus to fundamental supply-demand dynamics.
Beyond the geopolitical relief, market sentiment is being pressured by growing expectations of oversupply.