Crude oil prices are holding firm near their highest levels in five weeks, with Brent crude hovering around $88 a barrel and West Texas Intermediate (WTI) trading above $82.
The resilience in energy markets reflects a tug-of-war between escalating geopolitical risks in the Middle East and emerging diplomatic efforts to de-escalate tensions.
Investors remain cautious about potential supply disruptions following recent attacks on tankers and infrastructure in Kuwait, as well as drone strikes on the CPC terminal in Iraq.
These incidents have kept a premium on oil prices, even as diplomatic channels show signs of activity.
A proposed ten-day ceasefire between the United States and Iran has helped to temper some of the immediate downside pressure, but it has not been enough to trigger a significant sell-off.
The current market regime sees energy assets outperforming broader equities, driven by persistent concerns over supply chain vulnerabilities.