Crude oil prices fell sharply on Monday as markets reacted to reports of a pause in fighting in the Gulf region.
The sudden de-escalation in geopolitical tensions has alleviated immediate supply disruption risks, prompting a swift repricing of energy assets.
This development marks a significant shift from the recent premium placed on oil due to regional instability.
The drop in energy costs provided immediate relief to inflation-sensitive assets.
Asian equity markets rallied broadly, with investors rotating into risk-on positions as the cost-of-living pressure from high fuel prices receded.
Simultaneously, bond markets responded positively, with yields adjusting lower as the prospect of persistent energy-driven inflation diminished.