Brent crude futures dropped 78 cents, or 1.0%, to settle at $76.30 a barrel, extending a multi-day slide that has pushed the benchmark to its lowest level in four months.
The decline reflects a sharp shift in market sentiment as traders digest signs that shipping traffic through the Strait of Hormuz is normalizing following a period of heightened disruption.
The sell-off underscores how quickly the market is unwinding the risk premium that had been attached to Middle East supply routes.
With US-Iran tensions appearing to ease, the immediate threat of a prolonged chokepoint closure has diminished, allowing traders to focus on broader supply-demand fundamentals rather than geopolitical tail risks.
The move suggests that the market views the recent shipping disruptions as a temporary anomaly rather than a structural shift in global energy flows.
This development follows a series of reports indicating that tanker volumes through the Strait have surged back toward pre-crisis levels.