Brent crude futures for August delivery slipped 40 cents to $73.34 per barrel on Thursday, while US West Texas Intermediate (WTI) fell 27 cents to $70.07.
The decline marks a significant retreat from the elevated levels seen during the height of the US-Iran conflict, bringing benchmarks back to territory last observed before the outbreak of hostilities in February.
The price action reflects a swift market repricing as supply concerns ease.
Tankers that had been stranded near the Strait of Hormuz have resumed transit following an initial agreement between the US and Iran.
This normalization of shipping routes has alleviated immediate fears of a prolonged bottleneck in one of the world’s most critical energy chokepoints, allowing the geopolitical risk premium to dissipate.
The move underscores how quickly energy markets can unwind when physical supply constraints are removed.