Brent crude futures for August delivery dropped $1.06, or 1.44 percent, to settle at $72.68 a barrel.
The decline marks a continuation of the recent sell-off, with prices hovering near the four-month lows established in the previous session.
The downward pressure reflects growing market confidence that shipping traffic through the Strait of Hormuz is stabilizing.
Traders are increasingly digesting the reality that the ongoing disruption to shipping routes has not materialized into a sustained supply shock.
As the immediate risk of a bottleneck in the critical chokepoint recedes, the market is repricing the premium that had been attached to Middle East supply uncertainty.
This shift in sentiment underscores a broader transition in the energy complex.