Oil prices are trading in a narrow range as investors assess mounting risks to energy flows in the Middle East.
The market is grappling with the dual pressures of geopolitical uncertainty and shifting supply dynamics, leading to heightened volatility in crude benchmarks.
Brent crude futures have shown mixed signals, reflecting the market's cautious stance.
While the immediate threat to supply routes has not materialized into a physical disruption, the risk premium remains embedded in prices.
Traders are closely monitoring developments in the region, particularly any signs of escalation that could impact key shipping corridors.
This volatility comes after a period of relative stability, where oil prices had stabilized near pre-conflict levels as the Iran risk premium began to fade.