Crude oil markets have stabilized following a sharp intraday surge triggered by escalating geopolitical tensions between the United States and Iran.
The volatility emerged after US President Donald Trump declared the existing ceasefire agreement "over," citing renewed Iranian attacks on commercial shipping in the Strait of Hormuz.
Despite the heightened rhetoric, Brent crude prices retreated from their session peaks, indicating that market participants are not yet pricing in a prolonged supply disruption.
The price action reflects a cautious market stance rather than outright panic.
While the threat to shipping routes in the Strait of Hormuz remains a tangible risk to global energy flows, the immediate sell-off suggests that traders are weighing the likelihood of actual physical disruption against the potential for diplomatic de-escalation.
This follows a period of tentative stability in crude markets after a previous US-Iran agreement to halt military hostilities in the Gulf region.
The development underscores the persistent fragility of the interim peace framework.