Global oil prices dropped sharply on Monday after the United States and Iran avoided direct military confrontation for a third consecutive day, increasing market expectations that diplomatic efforts could prevent a larger regional conflict.

The decline came after oil markets experienced a major surge in recent days as investors worried that escalating military exchanges could disrupt global energy supplies.

Although prices have retreated, analysts warn that significant risks remain due to ongoing security concerns across the Middle East.

Brent Crude Drops After Surpassing $100 Per Barrel

Brent crude, the international benchmark for oil prices, fell approximately 6% to around $91 per barrel on Monday.

The decline followed a brief increase above $100 per barrel just days earlier as traders reacted to rising fears of a broader conflict.

U.S. benchmark West Texas Intermediate (WTI) crude also moved lower, dropping about 5.6% to approximately $84 per barrel.

The sudden reversal highlights how quickly energy markets can react to changes in geopolitical risk.