Brent drops under $80 as geopolitical risk premium eases

Brent crude prices fell sharply on August 4, slipping below the $80-a-barrel mark as signs of progress in negotiations to ease tensions in the Middle East reduced concerns over potential disruptions to global oil supplies.

According to data from Investing.com, Brent futures dropped to $79.91 per barrel by 18:25, marking a decline of 4.61%, or $3.86, from the previous session's close.

The sell-off came as market participants reacted to reports suggesting advances in diplomatic efforts to resolve the conflict in the Middle East, prompting investors to reassess the geopolitical risk premium that had supported crude prices in recent weeks.

By Vafa Guliyeva