Brent crude has fallen to its lowest price 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.
The International Maritime Organization (IMO) has noted the return of vessel movements, effectively neutralizing the immediate risk of a prolonged supply blockade.
This decline represents the cheapest oil has traded since February 27, signaling a significant unwinding of the supply disruption fears that had previously dominated pricing.
The price collapse reflects a swift market repricing as traders digest confirmation that maritime traffic is flowing through the critical chokepoint.
The International Maritime Organization (IMO) has noted the return of vessel movements, effectively neutralizing the immediate risk of a prolonged supply blockade.
With the physical threat to energy flows receding, the speculative premium embedded in crude prices has evaporated, leaving benchmarks vulnerable to downward pressure.