Brent crude futures stabilized in early trading as geopolitical risk premiums continued to unwind following President Donald Trump’s decision to delay a planned military strike against Iran.
The US president indicated that new negotiations with Tehran would commence on Monday, aiming to secure an agreement that ends the ongoing conflict.
This diplomatic pivot marks a significant de-escalation from earlier reports that the US was merely an hour away from launching an attack.
The market reaction reflects a growing confidence that the immediate threat of a supply disruption in the Strait of Hormuz has receded.
Traders are adjusting positions as the probability of a sudden, war-driven oil shock diminishes.
The shift from military posturing to diplomatic channels has provided a clearer, albeit still uncertain, path forward for energy markets that have been volatile due to regional tensions.