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*Global risk sentiment improves as Iran and Israel signal willingness to reduce military operations
*Immediate fears of broader regional escalation ease after Netanyahu signals pause in strikes
*Crude oil prices retreat as geopolitical risk premium unwinds
*Markets remain focused on whether Strait of Hormuz shipping flows can normalize
Global market sentiment improved after both Iran and Israel signaled a willingness to scale back military operations following a recent flare-up that had threatened to derail ongoing peace negotiations. The shift in tone helped ease immediate concerns over a broader regional conflict and supported a more constructive risk environment across global markets.
Israeli Prime Minister Benjamin Netanyahu stated that Israel would halt strikes against Iran for now, while reserving the right to respond if Tehran launches further attacks. The latest remarks reduced near-term geopolitical fears, as investors interpreted the move as a sign that both sides may be attempting to prevent further escalation.
Crude oil prices retreated as easing tensions reduced immediate concerns over supply disruptions in the Middle East. The pullback reflected a partial unwinding of the geopolitical risk premium that had supported oil prices in recent weeks, especially as markets reassessed the likelihood of further disruptions to energy flows.
Attention is now shifting toward whether the de-escalation can translate into a more durable peace arrangement, particularly regarding the reopening and normalization of shipping activity through the Strait of Hormuz. While some commercial vessels have reportedly begun returning to the route, activity remains below normal levels as security concerns continue to weigh on shipping confidence.
Overall, the decline in oil prices reflects improving sentiment around regional stability, although uncertainty remains elevated. Market participants will continue to monitor developments between Iran and Israel, as well as shipping conditions in the Strait of Hormuz, for clearer signals on the future direction of crude oil prices.
Technical Analysis

CL-Oil, H4:
Crude oil prices are trading lower, currently testing the 90.40 support level, which serves as a key near-term floor.
Momentum remains bearish, with the MACD strengthening to the downside and the RSI at 38 below the midline, indicating continued selling pressure and downside risk.
A confirmed breakdown below 90.40 could extend losses toward the next support at 86.50, reinforcing the bearish outlook in the near term.
However, if selling pressure begins to fade, a technical rebound may occur, with prices likely to retest the 94.20 resistance level, followed by higher levels if recovery momentum strengthens.
Resistance Levels: 94.20, 97.90
Support Levels: 90.40, 86.50
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