President Trump is taking action to address rising energy prices.
The administration waived key Russia-related sanctions and tariffs, opening the possibility of additional Russian fuel reaching global markets.
Brent crude dropped approximately 2% to around $108 per barrel during early Monday trading.
The announcement comes as the Strait of Hormuz remains disrupted by the ongoing conflict with Iran.
However, analysts warn that additional Russian supplies may not be enough to replace lost Middle Eastern oil exports.
For Wall Street, the bigger question is whether falling energy prices can reduce inflation expectations and allow Treasury yields to decline.
A sustained drop in oil could provide much-needed relief for technology stocks.