Global crude oil benchmarks retreated sharply on Thursday, shedding more than $3 a barrel to reach their lowest levels since before the outbreak of the Iran war in February.
The sell-off reflects a rapid normalization of shipping routes in the Persian Gulf, as investors moved to unwind the supply disruption premium that had propped up prices for months.
Brent crude fell toward $73 a barrel, effectively erasing the gains accumulated during the height of the conflict.
Brent crude fell toward $73 a barrel, effectively erasing the gains accumulated during the height of the conflict.
The price action underscores a swift shift in market sentiment, with traders betting that the resumption of tanker flows through the Strait of Hormuz will stabilize global supply chains and alleviate the risk of physical shortages.
The development marks a significant reversal from recent weeks, when fears of prolonged blockades and military escalation in the region had driven energy prices higher.
The rapid return of commercial shipping activity suggests that the immediate threat to global oil transit has diminished, allowing markets to reprice the risk premium downward.