Brent crude futures have slid to their lowest levels since before the outbreak of the Iran war in February, as markets digest a rapid normalization of Middle East supply flows.
The sell-off reflects a decisive shift in sentiment, with traders pricing out the risk premium that had supported prices during the height of regional tensions.
Prompt-month August delivery contracts for Brent fell sharply on Thursday, mirroring a broader retreat across global crude benchmarks.
The decline underscores how quickly the market is adjusting to the reality that shipping routes through the Strait of Hormuz have effectively stabilized.
US Energy Secretary Chris Wright recently confirmed that flows through the critical chokepoint are operating without significant disruption, reinforcing the view that the supply shock feared earlier in the year has not materialized.
The price action highlights the dominance of supply-side reassurance over lingering demand concerns.