Brent crude prices moved higher in Monday morning trading as markets digested reports that the United States and Iran have agreed to cease hostilities.
The development follows a weekend of military strikes that had raised fears of a prolonged escalation and potential disruption to energy infrastructure in the region.
The agreement to halt attacks comes after a period of heightened volatility in energy markets.
Investors had been pricing in significant supply risk as the fragile truce between the two nations appeared to unravel.
The news provided a temporary reprieve, allowing oil prices to edge up on hopes that the immediate threat to shipping lanes and production facilities has receded.
Asian equity markets opened with mixed signals, reflecting the complex interplay between geopolitical relief and broader economic concerns.