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Oil markets anticipate a gradual return to normalcy as US‑Iran diplomacy eases supply constraints

Executive summary: A potential diplomatic breakthrough between the United States and Iran is expected to lift sanctions and increase oil supply, ending a three‑month price crisis. The resolution impacts global energy pricing, inflation outlook, and geopolitical risk assessments for investors.

Who is involved: U.S. and Iranian officials, international oil companies, and global commodity markets.

Likely next: Negotiations will likely continue over the next weeks, with possible incremental supply increases and market reactions.

The prospect of a US‑Iran agreement reduces immediate supply concerns, leading to a tentative stabilization of crude prices after months of volatility. Global inventories have fallen sharply, supporting a modest price recovery. Operators remain cautious as the diplomatic process unfolds and market adjustments lag behind policy signals.

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