Crude futures climbed from prewar levels Monday following weekend exchanges between the U.S. and Iran, with both sides agreeing to resume talks. WTI crude settled 2.2% higher at $70.75 a barrel, while Brent gained 1.6% to $73.15. The de-escalation helped reduce the risk premium in oil markets, though shipping through the Strait of Hormuz remains constrained by insurance concerns.

Tortoise Capital's Rob Thummel noted that the market expects continued flows through the critical waterway, but prices will likely stay supported as reserves need rebuilding. Mizuho's Robert Yawger warned that reduced shipping momentum could persist even with talks resuming, as insurers remain cautious about Gulf operations.

The recent pullback from April-May highs of $95-110 per barrel hasn't been fully reflected in corporate forecasts, according to Baird analysts Jonathan Komp and Alexander Conway. Lower energy costs typically improve consumer sentiment, which bodes well for discretionary spending. Dick's Sporting Goods, Crocs, and Adidas appear particularly well-positioned to benefit from this tailwind.

Energy markets remain volatile amid geopolitical uncertainty, but the current trajectory suggests inventory rebuilding will support prices through the summer driving season.