Oil & Gas

Oil prices edged higher as investors closely evaluated the U.S. brokered ceasefire between Iran and Israel, a development that has momentarily eased fears of a broader Middle East conflict that could disrupt global energy supply. The truce comes after a turbulent two weeks marked by U.S. airstrikes on Iranian nuclear sites and retaliatory threats that briefly drove oil prices to five month highs. With President Trump confirming that both Iran and Israel agreed to halt hostilities and early signs pointing to compliance geopolitical risk premiums in the oil market have begun to retreat. However, the situation remains fluid. Analysts warn that unless the ceasefire proves durable and shipping lanes like the Strait of Hormuz remain secure, any renewed military activity could trigger another spike in prices. U.S. involvement in the conflict has drawn global attention to Washington’s role as both a diplomatic broker and a strategic player in global energy stability.

On the economic and business front, market fundamentals continue to exert downward pressure on prices despite geopolitical developments. Brent crude rose 1.3% to $67.99 while WTI gained 1.4% to $65.24, though both remain well below last week's peaks. Industry data showed a drawdown in U.S. crude inventories by over 4 million barrels, reflecting healthy domestic demand, which has helped partially offset bearish sentiment. Still, broader macroeconomic factors, including sluggish industrial data from China and subdued global demand forecasts, are weighing on investor sentiment. Energy firms are recalibrating their outlooks, with many U.S.based producers and refiners monitoring potential logistical bottlenecks and government responses closely. As long as Middle Eastern oil flows remain uninterrupted and no new sanctions or military escalations emerge, markets are expected to remain range bound, reflecting a delicate balance between geopolitical anxiety and economic caution.