Brent crude oil prices have fallen below $71 a barrel, hitting their lowest level since the start of recent regional tensions. The drop to $70.80 is tied to reported progress in indirect US-Iran peace talks in Qatar.
Analysts say the decline reflects reduced geopolitical risk, particularly concerning the strategic Strait of Hormuz. The market is now pricing in a lower probability of crude oil reaching new record highs soon.
Traders will continue to monitor the negotiations. Any formal agreement on the Strait of Hormuz could further pressure prices. Conversely, if talks stall, the current risk premium could return.
OPEC production decisions also remain a key factor for global supply.