Tehran: Oil prices experienced a notable decline following a temporary cessation of US military strikes on Iran, aimed at creating space for diplomacy. Tehran has reciprocated by halting its retaliatory actions against regional neighbors, offering a much-needed respite for Gulf shipping and the oil sector. According to France24.com, the recent hostilities between the US and Iran resumed earlier this month, breaching a fragile truce after Iran targeted ships in Omani waters within the Strait of Hormuz. This escalation prompted the US military to conduct strikes on Iran for 13 consecutive nights, marking the largest flare-up since an April ceasefire. However, the strikes ceased over the weekend, providing an opportunity for renewed diplomatic efforts. The conflict had expanded beyond the critical energy corridor, with Iran-backed Houthi rebels in Yemen attacking Saudi vessels in the Bab al-Mandeb Strait, a key passage into the Red Sea. This led to a surge in crude prices, with Brent crude surpassing $100 a ba rrel last week for the first time since May. However, as news emerged that shipping continued in the Red Sea, investors began to adjust their positions, resulting in a pullback in oil prices. President Trump's decision to pause further strikes, coupled with Iran's announcement of progress in negotiations with Oman over the management of the Strait of Hormuz, brought some relief to the market. The discussions centered on ensuring the safe passage of shipping while respecting the sovereign rights of both nations, as stated by Iran's foreign ministry spokesman, Esmaeil Baqaei. Additionally, a report indicated that Pakistan might consider resuming US-Iran peace talks, following an initiative led by China. This prospect contributed to the downturn in oil prices, with Brent crude dropping by over seven percent at one point, briefly falling below $90 a barrel. The easing of tensions in the Middle East alleviated concerns about inflation and potential interest rate hikes, positively impacting equity markets. Howev er, traders remain wary of the sustainability of the AI boom and the substantial investments in the sector, leading to ongoing volatility. Asian markets displayed mixed performances, with Seoul experiencing losses, led by declines in chip giants SK hynix and Samsung. Taipei and Singapore also faced downturns, while Jakarta retreated following the unexpected resignation of Indonesian central bank chief Perry Warjiyo. Conversely, Tokyo saw gains, although tech firms such as Advantest, Kioxia, and Tokyo Electron faced selling pressure. Markets in Hong Kong, Sydney, Shanghai, Wellington, and Manila registered increases.