Brent crude futures fell sharply, dropping more than 5% to trade around $71.50 a barrel.
The steep decline marks a significant acceleration in the sell-off that has plagued energy markets over the past week, pushing the North Sea benchmark to its lowest levels in four months.
The price action reflects a rapid shift in market sentiment regarding geopolitical risk.
Traders are increasingly confident that shipping traffic through the Strait of Hormuz is stabilizing, removing the premium that had supported oil prices amid fears of disruption.
This repricing suggests that the market views the immediate threat to global energy supply chains as diminishing.
The sell-off extends losses from earlier in the week, with crude oil benchmarks tracking for another weekly decline.