Oil prices are stabilizing just above their pre-conflict baselines, reflecting a market that has digested the initial shock of the Iran conflict but remains wary of the diplomatic road ahead.
While the immediate threat of a total Strait of Hormuz blockade has receded, the underlying geopolitical tension continues to cast a long shadow over energy flows.
The recent retreat in crude prices was driven by surging optimism surrounding a preliminary peace agreement between the United States and Iran.
This diplomatic breakthrough significantly reduced the perceived risk of supply disruptions in the critical shipping lane, prompting a sharp sell-off that pushed Brent crude below the $80-a-barrel threshold for the first time since hostilities began.
However, the current stabilization suggests that traders are no longer pricing in an immediate resolution, but rather a protracted period of uncertainty.
Skynews reports that despite the preliminary deal, the future of oil prices remains highly uncertain.