Oil prices remained stable during trading on Monday, as geopolitical tensions in the Middle East subsided following a decrease in the likelihood of a US military strike against Iran, after the internal unrest in the country calmed down.
This stability came after concerns eased about disruptions to oil supplies from Iran, one of the region's largest producers and a key member of OPEC, which led to a decline in the risk premium that had supported prices in recent weeks.
Markets had previously reacted to escalating internal protests in Iran and the possibility of US intervention, but recent signs of de-escalation and statements by US President Donald Trump have helped to calm fears and push prices to move within a narrow range after previous gains.
Analysts believe that the easing of Iranian tensions has removed an important factor supporting prices, at a time when markets are still assessing the balance of global supply and demand, amid fears of oversupply if geopolitical conditions remain stable.
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