Brent crude and natural gas prices retreated on Tuesday as mediators from Qatar indicated that negotiations between the United States and Iran are advancing toward a resolution of the ongoing conflict.
The development marks a tangible step forward in diplomatic efforts to de-escalate tensions in the Middle East, following the conclusion of the first round of direct talks between the two nations.
The market reaction reflects a rapid repricing of geopolitical risk.
With the Strait of Hormuz remaining a critical chokepoint for global energy supplies, any credible signal of peace reduces the premium investors have been paying for potential supply disruptions.
Brent crude fell in the session, while natural gas futures also softened, as traders adjusted positions away from the war-risk hedge that has supported energy prices in recent weeks.
This progress aligns with earlier reports that the US and Iran have agreed on a roadmap toward a final peace agreement, facilitated by mediators from Pakistan and Qatar.