Brent crude futures rose in early trading on Monday as markets reacted to reports that the United States and Iran have reached an agreement to suspend military attacks in the Gulf region.
The development marks a potential de-escalation following a weekend of strikes that had heightened fears of a broader conflict and subsequent supply disruptions.
The price move reflects a complex repricing dynamic.
While the prospect of a ceasefire reduces the immediate risk of a physical supply shock, the initial reaction saw prices climb, likely as traders adjusted positions following the volatility of the previous week.
The market is now weighing the likelihood of a sustained truce against the backdrop of ongoing geopolitical tensions.
According to media reports, the agreement aims to halt hostilities that had previously raised concerns over the safety of shipping routes and energy infrastructure in the region.