On Tuesday, oil prices continued their downward trend, with Brent crude futures dropping over 2% to $86.52 per barrel and U.S. West Texas Intermediate crude futures falling 2.3% to $80.71 per barrel. This decline follows a temporary halt in fighting between the U.S. and Iran, despite Tehran's denial of a 10-day ceasefire agreement.
The situation was further complicated by President Donald Trump's earlier consideration of a 'massive attack' on Iran, which he later retracted due to concerns over U.S. munitions stockpiles.
The Commonwealth Bank of Australia noted that while the easing of immediate conflict concerns has led to lower oil prices, risks to global energy supplies remain high, particularly regarding potential disputes over the critical Strait of Hormuz shipping lane, which could reignite hostilities