Crude oil prices fell sharply on Friday, with Brent crude dropping $1.47, or 1.95%, to $73.79 a barrel, while US West Texas Intermediate (WTI) declined $1.44, or 2%, to $70.48 a barrel.
The sell-off reflects a rapid repricing of shipping risk as reports confirm that tanker traffic through the Strait of Hormuz is returning to normal levels.
This improvement in shipping conditions follows the opening of a temporary corridor, which has helped stabilize energy flows despite ongoing geopolitical tensions.
The market’s reaction underscores a shift in investor focus from acute disruption risk to broader supply dynamics.
While a vessel was recently hit near Oman, the resumption of regular shipments has alleviated immediate fears of a prolonged blockade.
Consequently, the premium previously attached to oil due to route exposure has eroded, allowing oversupply concerns to re-emerge as the dominant market driver.