Crude oil prices retreated on Thursday, reversing a sharp surge triggered by escalating tensions between the United States and Iran.
The pullback followed comments from US President Donald Trump that helped calm market fears of a prolonged supply disruption in the Gulf region.
The move marks a stabilization phase for energy markets after a period of heightened volatility driven by geopolitical uncertainty.
Equity markets responded positively to the de-escalation, with broad-based gains led by the technology sector.
Investors engaged in bargain-buying across tech stocks, capitalizing on the reduced risk premium that had weighed on growth assets during the peak of the diplomatic flare-up.
The shift in sentiment suggests that traders are beginning to price in a lower probability of immediate military conflict, allowing risk appetite to return to equity markets.