Crude oil prices are pulling back from recent peaks as diplomatic progress suggests a resolution to the two-month conflict between the United States, Israel, and Iran.
Reports indicate that officials from Washington and Tehran are close to finalizing a one-page agreement to end hostilities, triggering a wave of relief across global markets.
The prospect of a ceasefire has removed the immediate supply disruption premium that had propped up energy benchmarks in recent weeks.
The easing of tensions in the Strait of Hormuz has shifted market focus from geopolitical risk to fundamental demand drivers.
While crude prices have softened, investment flows are increasingly targeting energy equities, with investors viewing the sector as a beneficiary of stabilized supply chains and potential post-conflict economic recovery.
The New Zealand sharemarket, for instance, has entered a wait-and-see mode, with traders balancing the oil price correction against the onset of earnings season.