- Brent and WTI reached their lowest levels in more than a week as traders priced a greater chance of de-escalation in the U.S.-Iran conflict.
- Hormuz traffic remains constrained despite the diplomatic progress, leaving a significant physical-supply and shipping risk in the oil market.
- The retreat in oil supported Treasuries, but conflict-linked disruption risks remain elevated across Hormuz, the Red Sea, and Saudi oil infrastructure.