Oil prices fell one percent after Washington and Tehran pledged to continue negotiations, easing supply disruption fears and calming global energy markets.
Reuters reported that easing concerns over possible conflict and supply disruption helped calm energy markets on Monday.
Market analyst Tony Sycamore said expectations of continued diplomatic talks have reduced immediate fears of supply shocks in the region.
Iran and the United States agreed to continue indirect nuclear negotiations after both sides described recent talks in Oman as constructive despite ongoing disagreements.
Investors have been closely watching tensions involving Iran, a major regional producer, due to concerns that conflict could disrupt global energy supply.
Nearly one-fifth of the world’s oil consumption passes through the Strait of Hormuz, making any regional instability a major concern for global markets.
With diplomatic engagement continuing, market attention now focuses on whether negotiations can sustain stability and prevent renewed disruptions in global oil supply.
