Brent crude futures fell below the $80 per barrel threshold on Thursday, extending a multi-day decline that has pushed the benchmark to its lowest level since the US-Iran conflict erupted in February.
The retreat follows the signing of an interim peace agreement between the United States and Iran, finalized by President Donald Trump and Iranian leadership, which was expected to alleviate supply concerns in the Gulf region.
Despite the diplomatic breakthrough, market participants remain hesitant to fully price out the risk of renewed escalation, citing conflicting claims regarding the implementation and longevity of the talks.
The benchmark has now slipped to approximately $70.80 per barrel, marking a fresh low for the period and reflecting persistent selling pressure.
The decline underscores the market's skepticism toward the durability of the ceasefire, with traders maintaining a cautious stance on energy exposure.
While the agreement aims to stabilize the Strait of Hormuz and restore normal shipping flows, the immediate reaction suggests that geopolitical risk premiums are not being entirely unwound.