Global crude oil benchmarks have retreated sharply, with Brent crude briefly dipping below $72.48 a barrel, marking the lowest price levels since before the outbreak of the Iran war in February.
The sell-off reflects a rapid normalization of shipping routes and a significant reduction in geopolitical risk premiums that had propped up prices for months.
Brent crude fell more than $3 in the session, driven by reports that a growing number of tankers are resuming transit through the Strait of Hormuz.
Brent crude fell more than $3 in the session, driven by reports that a growing number of tankers are resuming transit through the Strait of Hormuz.
The easing of tensions in the chokepoint has removed the immediate supply disruption threat that had kept markets on edge since the conflict began earlier this year.
The price action underscores how quickly markets can repricing when physical supply risks recede.
With shipping flows stabilizing, the focus for traders is shifting from geopolitical disruption to fundamental supply and demand dynamics.