Brent crude has fallen to its lowest level since the outbreak of the Iran war, driven by a rapid resumption of shipping activity in the Strait of Hormuz.
The benchmark dropped towards $73 a barrel, marking a sharp reversal from the $126 peak reached at the end of April when the conflict initially shocked global markets.
This decline represents the cheapest oil has traded since February 27, effectively erasing the war premium that had sustained higher prices for months.
The price collapse reflects a swift market repricing of geopolitical risk.
As maritime traffic confirms its return to the Strait of Hormuz, the immediate threat to global energy flows has diminished.
Traders are unwinding positions that had priced in prolonged supply disruptions, leading to a broad sell-off in crude futures.