Oil Prices Slump Over 4% as U.S.–Iran Tensions Show Signs of Easing

Global oil benchmarks dropped sharply on Monday, with prices falling more than 4% as geopolitical risk premiums faded following signals of potential de-escalation between Washington and Tehran.

Brent crude futures for April delivery on the London ICE Futures exchange fell by $3.31, or 4.77%, to settle at $66.01 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude for March delivery dropped $3.21, or 4.92%, to $62 per barrel on the New York Mercantile Exchange.

The sell-off followed reports that Iran is engaging in "serious talks" with the United States, reducing fears of supply disruptions in the Middle East. Market sentiment was further weighed down by a stronger U.S. dollar and OPEC+'s decision to maintain its current production strategy through March, reinforcing expectations of a well-supplied market.