Brent crude futures for September settlement fell 1.6% to $89.30 a barrel in early Asian trading as the United States confirmed it had wrapped up its latest wave of military strikes on Iran.
The de-escalation comes after weeks of heightened volatility driven by fears that the conflict could disrupt global energy supplies through the Strait of Hormuz.
The market reaction reflects a rapid repricing of supply risk.
While the US military campaign targeted specific Iranian military installations, reports indicate that critical infrastructure such as bridges and power plants were spared.
This distinction has eased immediate concerns about a prolonged shutdown of Iran’s oil export capacity or a broader regional escalation that could choke shipping lanes.
The pullback in oil prices follows a period of intense geopolitical pressure.