Energy markets are unwinding risk premiums as the Strait of Hormuz begins to reopen, allowing vast quantities of oil and natural gas to flow back into global supply chains.
The development marks a significant de-escalation in the shipping crisis that had previously constrained trade through one of the world's most critical energy chokepoints.
Brent crude and natural gas prices have faltered in response to the improved logistics outlook.
The price action reflects a rapid repricing of supply disruption risk, with traders adjusting positions as the immediate threat to tanker routes diminishes.
The move underscores how heavily markets had priced in the potential for prolonged bottlenecks in the region.
Despite the market relief, European policymakers remain cautious.