West Texas Intermediate (WTI) crude fell nearly 5% to $80.63 per barrel on Monday, marking a significant pullback from recent highs.
The decline coincides with a temporary pause in hostilities in the Middle East, which has rapidly unwound the geopolitical risk premium that had propped up energy prices.
In contrast, global gold prices rallied to $4,069 per ounce, highlighting a stark divergence in commodity markets.
In contrast, global gold prices rallied to $4,069 per ounce, highlighting a stark divergence in commodity markets.
Investors appear to be rotating capital away from risk-sensitive assets like oil and into traditional safe havens as the immediate threat of supply disruption recedes.
This move underscores a broader shift in market positioning, with precious metals benefiting from the cooling geopolitical tension.
The drop in WTI prices reflects the market's sensitivity to the Middle East truce, which had previously driven prices higher on fears of supply chain interruptions.