Crude prices dropped as traders reassessed the risk outlook and stepped back from aggressive buying. Brent crude fell by $1.67, or 2.5 percent, to $64.85 per barrel, while US West Texas Intermediate (WTI) slipped $1.54, also 2.5 percent, to $60.48 per barrel, according to Reuters.
The market reaction reflects a softer tone in geopolitical tensions. Concerns over a possible US military strike on Iran have faded, reducing the sense of urgency that had been pushing prices higher.
When fear steps aside, caution often takes its place and that is exactly what played out in oil trading.Reuters also reported that protests against the Iranian government have slowed, and the temporary halt of some punishments has helped cool tensions in the region. This has eased worries about supply disruptions from the Middle East, a key factor that often shakes energy markets.
Analysts say the drop in prices shows how sensitive oil markets are to political signals. Even a small shift in expectations can tip the balance. With tensions easing and supply risks looking less severe, investors chose to trade carefully rather than chase higher prices.
In short, calmer headlines led to calmer markets and oil prices paid the price, sliding by 2.5 percent in a single session.
