Oil markets retreated significantly on Monday, driven by a shift in sentiment after reports emerged that the United States and Iran have reached an agreement to de-escalate tensions in the Middle East.
The development has prompted investors to unwind positions built on the expectation of prolonged supply disruptions in the region.
Brent crude futures dropped sharply in the session, reflecting the immediate market reaction to the diplomatic news.
The selloff underscores how quickly energy prices can reverse when geopolitical premiums are removed from the equation.
The decline in oil prices adds pressure to the Norwegian krone, which has struggled over the past month amid falling energy benchmarks.
According to earlier reporting, the currency has faced headwinds as oil values softened, linking the diplomatic development directly to Nordic FX markets.