Oil prices eased in European trading after Tehran announced it had halted military operations against Israel, easing fears that the flare‑up could choke the Strait of Hormuz. Brent fell to $94.74 a barrel and U.S. WTI slipped to $91.85, both retreating from earlier gains of more than 4.5% that had pushed them near $100.

Both benchmarks have surged more than 60% since the start of the year, yet they sit well below the March peak when Brent lingered around $120 a barrel. The brief rally earlier in the session reflected traders pricing in a potential supply squeeze, but the de‑escalation removed that premium and restored a more measured market tone.

Investors will now focus on diplomatic cues for any resurgence of hostilities, but the swift price correction shows oil’s ability to absorb short‑term geopolitical shocks. With global inventories tight and OPEC‑plus output cuts still in place, the market is likely to stay on the upside, anchored by the underlying supply deficit.

Energy funds that rallied on the earlier spike will see modest redraws, while refineries benefit from lower input costs. The price level remains attractive for buyers seeking exposure to a market still constrained by geopolitical risk and limited spare capacity, in the near term for investors.