Crude oil prices are sliding toward their lowest levels in four months as physical evidence confirms the Strait of Hormuz is reopening to commercial traffic.
Brent crude futures fell 0.56% to $74.84 a barrel on Friday, extending a steep weekly decline that has erased much of the geopolitical risk premium accumulated since the US-Iran conflict erupted in February.
The price correction follows data showing crude shipments through the chokepoint have risen to their highest volume since the war began.
A ceasefire agreement has allowed stranded oil tankers to exit the waterway, signaling a tangible de-escalation in shipping risks that had previously forced rerouting and inflated freight costs.
Multiple wire services, including Bloomberg and Brecorder, have corroborated the surge in transit activity.
This development marks a sharp reversal from the volatility seen earlier in the week.