London:Global energy prices saw a significant decline on Monday, with Brent crude dropping nearly 5% due to optimism surrounding a potential diplomatic resolution between the United States and Iran, easing fears of supply disruptions in the Middle East.

According to Anadolu Agency, the decrease in prices followed comments from US President Donald Trump, who indicated that extensive military action against Iran might be avoided if a deal could be reached between Washington and Tehran.

This optimism contributed to expectations of reduced shipping restrictions and a possible recovery in Gulf oil exports, further influencing the downward trend in energy prices. As of 1840GMT, Brent crude was priced at $93.50 per barrel, representing a 4.93% decrease, while West Texas Intermediate (WTI) crude fell 3.48% to $87.70.

Additionally, European natural gas prices decreased by 3.95%, standing at £82.21 ($92.10) per megawatt-hour. Over the past month, Brent's value has decreased by 12.24%, and WTI has fallen by 6.57%, with European natural gas prices down by 2.55% on a monthly basis.

Despite the recent declines, energy prices are still significantly higher than last year. Brent crude has risen by 46.1% and WTI by 45.65%, while European natural gas prices are up 164.54% compared to the previous year.