Oil prices declined sharply in early trading after U.S. President Donald Trump announced the postponement of a planned military strike on Iran, following appeals from key Middle Eastern leaders.
The decision has eased concerns about potential supply disruptions in the region, particularly in the Strait of Hormuz, a critical oil export route.
8%. The market reaction reflects a recalibration of risk premiums tied to geopolitical tensions in the Middle East.
Brent crude fell by 2.1% in the session, while West Texas Intermediate (WTI) dropped 1.8%.
The market reaction reflects a recalibration of risk premiums tied to geopolitical tensions in the Middle East.
Analysts noted that the pause in military action has temporarily reduced the likelihood of a sharp spike in energy prices.
The broader energy market has been closely monitoring developments between the U.S. and Iran, with previous reports of potential military action having pushed prices higher.