Brent crude futures posted modest gains in Friday session trading as market participants weighed the latest developments in the diplomatic efforts between the United States and Iran.
The price action reflects cautious optimism that the interim peace agreement, designed to resolve a two-month-old conflict, will hold and facilitate a return to normal shipping operations through the Strait of Hormuz.
The slight upward movement in oil prices comes after global equity markets rose earlier in the week on similar news.
Investors are closely monitoring the implementation details of the ceasefire, which aims to halt recent military hostilities and preserve the fragile diplomatic progress.
The Strait of Hormuz remains a critical chokepoint for global energy supplies, and any indication of stabilized transit routes is being viewed positively by energy traders.
While the immediate price reaction was contained, the underlying sentiment suggests that markets are pricing in a reduced risk premium for geopolitical disruption in the short term.