The market consensus that global oil supply would normalize despite ongoing military conflict in Iran is facing renewed scrutiny.
Analysts warn that the rapid decline in oil price volatility may have been premature, as geopolitical risks remain unresolved and domestic fuel costs begin to bite.
Brent crude and WTI have softened in recent sessions as investors positioned for a near-term drop, betting that supply disruptions would be short-lived.
However, this complacency is being challenged by fresh developments on both the geopolitical and domestic fronts.
The Australian federal government's decision not to extend the fuel excise discount is already impacting pump prices, adding a layer of consumer pressure to the energy narrative.
Market strategists are raising alarms over the potential for renewed volatility in global equities as military tensions between the United States and Iran intensify.