US President Donald Trump has called off planned military strikes against Iran, opting instead to launch fresh negotiations on Monday.
Speaking to reporters aboard Air Force One, Trump confirmed that preparations for an attack were underway but that he decided at the last minute to pursue a diplomatic path.
The reversal marks a sharp de-escalation in a conflict that had raised fears of a broader regional war.
Markets reacted to the news with a sense of relief, as the immediate threat of kinetic action was removed.
Brent crude futures, which had been trading at a premium due to fears of supply disruption in the Strait of Hormuz, saw selling pressure ease.
The shift from military confrontation to talks reduces the near-term risk of a supply shock, though traders remain cautious given the history of volatile negotiations between Washington and Tehran.