Reports that the Strait of Hormuz may reopen soon have pushed oil prices lower and improved investor sentiment across Asia-Pacific markets.
The development follows statements from President Donald Trump suggesting a plan to resolve the standoff involving ships stranded in the critical shipping corridor.
2% in the session, reflecting reduced concerns over supply disruptions.
Brent crude fell by 4.2% in the session, reflecting reduced concerns over supply disruptions.
The Strait of Hormuz, a vital route for global oil shipments, has been a focal point of geopolitical tensions between the U.S. and Iran.
The easing of pressure on this chokepoint is seen as a positive shift for global trade and energy markets.
The Strait of Hormuz disruption has been a recurring theme in recent weeks, with earlier reports linking the situation to volatility in medical supply chains and energy prices.