Crude oil markets saw a notable pullback during early Asian trading on Monday as geopolitical tensions appeared to ease. The decline followed an announcement that the United States government had decided to cancel a planned series of military strikes against Iran. Market participants reacted to the news by trimming risk premiums, as the shift toward potential diplomatic engagement raised optimism regarding the stability of the Strait of Hormuz and the avoidance of a larger regional conflict.

According to OilPrice.com, the market correction was swift. West Texas Intermediate (WTI) futures dropped approximately 5.88%, bringing prices down to $79.77 per barrel. Similarly, the international benchmark Brent crude saw its value retreat by 5.07%, settling at $83.47 per barrel. This downward movement marks a reversal of the volatility observed throughout July, during which both major oil benchmarks climbed by over 20% amid escalating friction in the Middle East. Traders are now recalibrating their positions, shifting focus from immediate supply disruption fears toward the possibility of a de-escalation in military posturing.