Brent crude futures settled at $71.99 a barrel, down $3.27 or 4.34%, as the flow of tankers through the Strait of Hormuz accelerated.
The sharp decline marks a significant repricing of supply disruption risks, with benchmarks moving closer to levels seen before the recent escalation in the region.
The price drop follows reports that stranded vessels are now exiting the strategic waterway, easing fears of a prolonged bottleneck.
This development comes after an initial accord aimed at stabilizing transit, which has begun to restore market confidence in the security of global energy flows.
Traders are interpreting the resumed traffic as a sign that the immediate threat to supply chains is receding.
The sell-off reflects a broader shift in sentiment, with investors reducing hedges against geopolitical shocks as operational normalcy returns to the corridor.