Oil prices dipped sharply as U.S.-Iran tensions briefly eased, with Brent and WTI futures falling over 2%—a move tied to reduced fears of energy infrastructure strikes. Though Iran denies a ceasefire, the pause has lifted market anxiety, prompting the Commonwealth Bank to note improved supply outlooks. But caution remains: unresolved disputes over the Strait of Hormuz could reignite hostilities, keeping global energy risks high.

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