Brent Crude Falls More Than 6% to $105.55 on Hopes of Iran War Breakthrough

Brent crude dropped more than 6% to $105.55 a barrel, its lowest level in more than two weeks, as markets responded to hopes of a breakthrough to end the Iran war, The Guardian reported. The decline reflects a rapid repricing of the geopolitical risk premium that had built up around the conflict. The move lower came as traders positioned for the possibility that the war could be brought to a close, easing concerns about supply disruption that had supported prices. The fall to $105.55 a barrel represents a significant retreat from recent levels and underscores how sensitive crude markets remain to developments in the conflict. A sustained de-escalation would likely remove a substantial portion of the risk premium embedded in crude prices. Conversely, any reversal in the prospects for a breakthrough would be expected to restore that premium quickly, leaving prices exposed to sharp swings in either direction. The scale of the single-day move underlines how quickly sentiment can shift in a market where the outcome of the conflict remains unresolved.