Crude oil benchmarks extended their decline on Wednesday, with Brent futures slipping below $76.50 a barrel to mark the lowest level in four months.
The sell-off reflects growing market confidence that shipping traffic through the Strait of Hormuz has stabilized, removing the immediate supply disruption risk that had kept a heavy premium on global energy prices.
Prices have since fallen more than 36% from those highs as traders digest signs that the tanker backlog in the critical chokepoint is clearing.
The retreat comes after a volatile period earlier this year when crude touched nearly $120 a barrel amid peak tensions between the US and Iran.
Prices have since fallen more than 36% from those highs as traders digest signs that the tanker backlog in the critical chokepoint is clearing.
The normalization of flows suggests that the acute phase of the shipping crisis is receding, allowing markets to reprice based on fundamental supply and demand rather than geopolitical fear.
Handelsavisen’s own analysis notes that while the immediate route risk has diminished, the broader geopolitical posture in the Middle East remains fragile.