Front-month Brent futures were hovering above the psychologically important $100-a-barrel mark, edging higher as traders weighed the latest developments in the Middle East conflict.

Attention in oil markets will likely be centered on diplomatic developments, said FXTM. The broker noted that any signs of de-escalation or renewed negotiations could provide downward pressure on prices, while continued tensions risk keeping the market elevated.

Analysts said the $100 threshold remains a key psychological level, with Brent holding just above it as supply concerns mingle with hopes for a diplomatic resolution. Market participants are watching statements from key producers and regional officials for clues on whether output disruptions might ease.

The broader market mood remained cautious, with investors balancing the risk of prolonged supply shocks against the potential for diplomatic breakthroughs. As the situation evolves, oil traders are expected to remain sensitive to headlines out of the region, with price movements likely reflecting both geopolitical sentiment and fundamental supply-demand dynamics.