Oil prices decline after reports of a US-Iran agreement ease geopolitical supply risks in the Middle East.
West Texas Intermediate crude fell to $79.40 in early Asian trading, marking a two-month low. The drop follows reports of a US-Iran agreement aimed at ending nearly four months of tensions, reducing concerns over potential supply disruptions in the region.
Prior to the deal, WTI had traded above $82 last week amid escalating Middle East tensions. Analysts had warned of further volatility if hostilities persisted, but the agreement has eased immediate supply fears.
Markets reacted swiftly, with crude futures extending losses in overnight trading. The decline reflects reduced risk premiums as geopolitical risks recede.