Oil prices slipped in early trading after President Trump said he'd postpone a planned U.S. attack on Iran, responding to Gulf leaders' request to leave diplomatic space for talks with Tehran over ending the war. Front-month WTI crude fell 1.3% to $107.28 per barrel while Brent dropped 2.7% to $109.11.

The pullback reflects a broader shift in sentiment. Nikos Tzabouras, senior market analyst at Tradu.com, said Trump has kept the cease-fire alive and left the door open for a diplomatic resolution. "The bull run is not without its limits," Tzabouras wrote in an email, pointing to Trump's consistent preference for a deal rather than military action.

Market participants appear to be pricing in lower near-term disruption risk. The removal of immediate military threat allowed traders to trim positions despite still-elevated geopolitical concerns. Brent crude's 2.7% drop marked the steepest move, suggesting the market had been holding a larger risk premium on Middle East supply disruptions.