An analyst group noted that while main actors are currently refraining from direct military action, peripheral conflicts continue to pose threats to global energy trade routes.
"The main market risk remains the energy and shipping front," wrote Analysts at Deutsche Bank in a client note, adding that regional attacks raise "the prospect of simultaneous disruption to both Gulf and Red Sea export routes."
The analysts further observed the ongoing volatility surrounding the diplomatic developments.
"So (there's a) welcome pause from the main actors but a fragile one, especially with side battles going on," wrote Analysts at Deutsche Bank.
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Market participants continue to monitor the Federal Reserve's upcoming policy meeting, where sustained energy price fluctuations could influence future interest rate decisions.
