Crude oil prices fell sharply on Monday as markets reacted to reports that the United States and Iran have paused military attacks, signaling a significant de-escalation in a conflict that has persisted for nearly four months.
The halt in hostilities triggered a rapid unwind of the risk premium that had been embedded in energy markets since the fighting began.
Brent crude and WTI benchmarks both declined in the session, with selling pressure broadening across the complex.
The move reflects a swift repricing of supply disruption risks, as traders digest the prospect of stabilized shipping routes and restored production flows in the region.
The sharp drop underscores how heavily the market had weighted the potential for prolonged infrastructure damage or export blockades.
This development aligns with a growing shift in market sentiment.