Brent crude has shed 42% of its value since the peak triggered by the war in Iran, returning to the price levels seen before the conflict began in late February.
The benchmark has effectively erased the supply shock premium that had driven valuations higher following the blockade of the Strait of Hormuz.
This diplomatic shift has contributed to a reversal of the week's earlier gains, with crude prices falling nearly 3% on Thursday alone.
The retreat comes as geopolitical risk sentiment cools.
Reports indicate that former U.S. President Donald Trump has signaled hesitancy to resume full-scale military action against Iran, despite recent escalations.
This diplomatic shift has contributed to a reversal of the week's earlier gains, with crude prices falling nearly 3% on Thursday alone.
The market is now repricing the probability of a prolonged supply disruption.