<h1>Energy supply risk eased as a limited military response reduced immediate fears of major oil transit disruption.</h1> Oil prices dropped after traders viewed Iran's limited missile attack as a de-escalation signal, reducing risk premia tied to a potential closure of the Strait of Hormuz. Analysts emphasise that Tehran would harm its own oil revenue by closing the strait but note alternative disruption methods - navigational jamming, mines, or tanker attacks - could still raise shipping costs and insurance premiums and sustain price volatility.