Tehran: Oil prices experienced a significant drop as the United States halted its strikes on Iran to allow diplomatic efforts to take precedence. Tehran responded by ceasing its retaliatory attacks on neighboring regions, offering a temporary relief to Gulf shipping and the oil industry. According to France24.com, the recent hostilities between the US and Iran resumed after a fragile truce was broken. Iran had attacked ships in the Strait of Hormuz, leading to an escalation of tensions. Prior to this pause, the US military conducted strikes on Iran for 13 consecutive nights, marking the largest resurgence of the conflict since an April ceasefire. However, the past three nights have seen a cessation of bombings, creating an opportunity for diplomatic dialogue. The conflict had previously spilled over into the Red Sea, with Iran-backed Houthi rebels in Yemen targeting Saudi vessels in the Bab al-Mandeb Strait. This caused crude prices to soar, with Brent crude surpassing $100 a barrel last week. The continuat ion of shipping in the Red Sea helped stabilize oil prices, while recent diplomatic progress provided further relief. Iran's foreign ministry spokesman, Esmaeil Baqaei, indicated that talks with Oman focused on ensuring the safe passage of ships through the Strait of Hormuz while respecting the sovereignty of both nations. Meanwhile, reports surfaced that Pakistan, with encouragement from China, is considering resuming US-Iran peace talks. The positive turn in Middle East developments led to a decline in oil prices, with Brent crude dropping more than seven percent at one point. This easing of tensions alleviated fears of renewed inflation and interest rate hikes, boosting equity markets. Despite the positive momentum, concerns over the sustainability of the AI boom and substantial investments in the sector continue to affect traders. In Asia, Seoul faced losses, particularly in the technology sector, while Tokyo saw gains despite pressures on tech firms. Other markets, including Hong Kong, Sydney, and Sha nghai, experienced increases, reflecting the broader optimism following the de-escalation in the Middle East.