West Texas Intermediate (WTI) crude prices briefly fell below the $80 per barrel threshold on Monday, driven by a temporary pause in hostilities in the Middle East.
The dip reflects a rapid unwinding of the risk premium that had supported energy markets amid fears of supply disruptions.
The retreat in WTI follows a sharp decline earlier in the week, when the benchmark breached the $70 level for the first time in weeks.
The retreat in WTI follows a sharp decline earlier in the week, when the benchmark breached the $70 level for the first time in weeks.
August Brent futures also retreated, trading near $72.57 a barrel, while spot prices for the North Sea benchmark slipped to $70.80, marking a fresh low since the outbreak of the US-Iran conflict in February.
The selling pressure extends a multi-day trend as traders reassess the likelihood of sustained supply constraints.
With the immediate threat of escalation receding, market participants are shifting focus back to fundamental demand drivers and inventory levels, which have remained under pressure.