Concentrated signals of diplomatic de-escalation are emerging from the Middle East, with Brent crude falling below $90 on Tuesday, and the US reportedly planning to send diplomats back to its Middle East embassies.

Pakistan's Chief of Army Staff Munir and Interior Minister Naqvi concluded their visit to Iran, where both sides focused on discussing measures to prevent further escalation, reopen the Strait of Hormuz, and accelerate an end to the conflict. Iran, through Pakistan, clearly conveyed its position and negotiation conditions regarding the Strait of Hormuz to the U.S., including the U.S. adhering to the Islamabad Memorandum of Understanding and lifting relevant sanctions. Meanwhile, the U.S. State Department is preparing to redeploy diplomatic personnel, previously evacuated due to U.S.-Iran conflict, back to multiple Middle Eastern embassies, with arrangements possibly starting as early as this week. These diplomatic de-escalation signals collectively lowered market expectations for a full-scale military conflict between the U.S. and Iran, leading to a rapid消化 of the geopolitical premium previously accumulated by crude oil. Brent crude fell below $90 per barrel on Tuesday, dropping over 3%; WTI crude simultaneously declined to around $82.50, reaching a new low for nearly a week.