Brent crude futures slipped below the US$75 per barrel threshold on Wednesday, marking the first time the benchmark has traded at that level since the outbreak of the US-Iran war.
The decline signals a rapid unwinding of the geopolitical risk premium that had previously propped up energy markets.
Analysts noted that the persistent drop in crude prices reflects shifting market sentiment regarding supply disruptions.
The sell-off in oil coincided with continued weakness in US equity markets.
The Nasdaq Composite fell for a third straight day, as selling pressure in large-cap technology stocks overwhelmed broader market resilience.
The S&P 500 also closed lower, extending its recent downturn.
Analysts noted that the persistent drop in crude prices reflects shifting market sentiment regarding supply disruptions.