Global oil prices erase most gains after topping $98 a barrel as Iran announces end of current attacks after exchanging fire with Israel

Global oil prices spiked above $98 per barrel following a military exchange between Iran and Israel, marking a significant intraday move driven by geopolitical uncertainty. However, prices quickly retreated to erase most of those gains after Iran announced the conclusion of its current attacks, signaling a contained and limited operation. The rapid reversal underscores how markets initially priced in escalation risk before reassessing the scope and duration of the conflict.

The market's quick fade of the spike suggests investors view the Iran-Israel exchange as an isolated event rather than the beginning of sustained hostilities. Energy traders will be monitoring whether further military developments emerge and how regional tensions evolve in the coming days, as any escalation could reignite commodity volatility. The speed at which oil prices normalized also reflects the market's attempt to distinguish between temporary headline risk and fundamental changes to global supply dynamics.