Brent crude futures have retreated sharply, slipping well below the $80 per barrel threshold as the market unwinds the geopolitical risk premium that had propelled prices higher earlier in the week.
The benchmark contract, which had surged to touch $90 amid fears of supply disruption, is now reversing course as traders digest fresh diplomatic developments.
After a session where Brent jumped 7% on intensifying geopolitical tensions, the market has pivoted on reports of progress in US-Iran talks, facilitated by Qatar.
The pullback reflects a rapid shift in sentiment.
After a session where Brent jumped 7% on intensifying geopolitical tensions, the market has pivoted on reports of progress in US-Iran talks, facilitated by Qatar.
This diplomatic signal has alleviated immediate concerns about potential disruptions to shipping routes in the Strait of Hormuz, a key chokepoint for global oil flows.
The reversal in energy markets coincides with a broader stabilization in risk assets.