Oil futures held steady following their largest single-day decline since June. The drop came after the US signaled it would not immediately pursue military action against Iran. This shift in geopolitical risk sentiment allowed the market to pause after a sharp sell-off.

The earlier price slide reflected market jitters over potential disruptions to Persian Gulf crude shipments. Iran is a major oil producer, and any conflict could threaten the vital Strait of Hormuz. With tensions easing for now, traders are reassessing supply risks that had driven recent volatility.

Attention now turns to upcoming OPEC+ meetings and demand forecasts from major agencies. If the geopolitical calm holds, focus will return to fundamental factors like global economic growth and inventory levels. The market remains sensitive to any new developments that could reignite supply concerns.