Oil prices fell after the United States and Iran signed an interim peace agreement, easing earlier market concerns about continued conflict.

Brent crude dropped about 2.3 percent in Asia, reversing a brief spike triggered by President Donald Trump’s warning that military strikes on Iran could resume if tensions escalated.

The price decline brought oil closer to levels seen before the conflict began in February, signaling reduced fears over supply disruptions.

Financial markets reacted positively overall, with major Asian stock indexes rising sharply and US futures also gaining on improved sentiment, Al-Jazeera has reported.

Analysts said investors were encouraged by the unexpected speed of the agreement, even as some uncertainty remained about its long-term impact.