Crude oil prices retreated sharply on Monday as markets digested fresh reports suggesting a revival in diplomatic efforts between the United States and Iran.

The shift in sentiment marks a rapid reversal from recent trading sessions, where fears of a collapsing framework agreement had driven energy benchmarks higher and weighed on global equities.

Mega-cap technology stocks, including Meta and Microsoft, led the advance in US futures, with shares gaining approximately 5% as risk appetite returned.

Investors are now repricing the risk of supply disruption in the Strait of Hormuz, with the prospect of a stabilized geopolitical environment reducing the premium on oil.

The cross-asset reaction was immediate and pronounced.

While energy commodities faced selling pressure, equity markets responded positively to the de-escalation narrative.

Mega-cap technology stocks, including Meta and Microsoft, led the advance in US futures, with shares gaining approximately 5% as risk appetite returned.