Hedge funds increased their bullish positions in crude oil at the fastest pace since March, even as oil prices fell sharply on Monday after signs of renewed diplomatic efforts between the US and Iran eased concerns over global energy supplies, according to a report by Bloomberg. The prospect of reduced geopolitical tensions prompted investors to unwind some of the risk premium that had built into oil markets during months of conflict. The decline in oil prices also rippled across broader financial markets. US Treasury prices rose as easing energy costs reduced near-term inflation concerns, pushing the benchmark 10-year Treasury yield lower. The uncertainty continues to present opportunities for global macro and commodity-focused hedge funds, many of which have actively traded energy markets throughout the recent conflict.