Oil prices dipped in early Asian trading as markets assessed that U.S.-Iran tensions may not escalate into broader conflict. WTI crude futures fell 0.3% to $71.85 a barrel, reflecting trader relief that immediate supply risks have receded.

ANZ Research analysts noted "expectations of limited military attacks between the U.S. and Iran," suggesting the market sees contained engagement. The Trump administration's decision to avoid targeting Iranian energy infrastructure provided reassurance that major supply disruptions may be avoided.

The muted price reaction — less than a 1% move — indicates traders have already priced in significant geopolitical risk premium. With Iranian energy infrastructure spared, the immediate threat to global supply flows has receded, though the situation remains fluid.

For investors, the watchpoint is whether restraint holds. Any strike on oil facilities would trigger a sharp reversal, but current positioning suggests the market is betting on containment over escalation.