Crude oil markets have found a tentative footing after a period of heightened geopolitical uncertainty in the Middle East.
Prices stabilized on Monday following an agreement between the United States and Iran to halt recent military hostilities in the Gulf region, effectively capping a week of subdued volatility.
The ceasefire deal aims to preserve an interim peace framework that had been under significant strain from escalating tensions earlier in the week.
The market reaction reflects a cautious recalibration of risk premiums.
While the immediate threat of a broader conflict appears to have receded, investors remain vigilant.
Asian equity markets rose cautiously in early trading, signaling that while the worst-case scenario of a prolonged supply disruption is being priced out, confidence in the durability of the truce is not yet absolute.