Doha: Oil prices tumbled more than 6% on Monday, extending sharp losses as easing tensions between the United States and Iran prompted investors to unwind the geopolitical risk premium that had lifted crude prices in recent weeks. Brent crude futures fell $6.20, or 6.4%, to $90.58 a barrel after briefly dropping below the $90 mark earlier in the session. US West Texas Intermediate (WTI) crude futures declined $5.80, or 6.5%, to $83.51 a barrel.
According to Qatar News Agency, both benchmarks were trading at their lowest levels in about a week after rallying over the previous three weeks on concerns that escalating tensions in the Middle East could disrupt global oil supplies. The recent de-escalation has led to a reassessment of potential supply disruptions, causing a significant impact on oil pricing as traders adjust to the changing geopolitical landscape.