Brent crude for September settlement settled near $76 a barrel, marking a stabilization at the end of a turbulent week defined by conflicting signals from the Middle East.
The benchmark contract fell 0.3% to $76.08 in Asian trading, reflecting a market that is balancing ongoing diplomatic engagement between the United States and Iran against fresh military friction in the region.
The price action underscores a tentative footing in crude markets after a period of heightened geopolitical uncertainty.
While a recent flare-up in fighting has driven a steep drop in tanker traffic through the Strait of Hormuz, the continuation of US-Iran talks has prevented a full-blown risk premium from re-emerging.
Investors appear to be discounting the immediate supply disruption risk, betting that diplomatic efforts will contain the escalation.
This dynamic follows a week where crude prices traded largely flat in Friday sessions, as traders digested the latest developments in the US-Iran diplomatic framework.