Brent crude futures fell more than 1 percent on Wednesday, sliding to $75.70 a barrel and marking the lowest level in four months.
The decline extends a week-long selloff driven by tangible signs that the tanker backlog in the Strait of Hormuz is clearing, with more vessels moving out of the chokepoint than in recent weeks.
The move to $75.70 underscores how quickly markets are discounting disruption fears as physical flow data improves.
The price action reflects a broadening repricing of Middle East supply risk.
Traders are digesting the normalization of shipping routes, which has eroded the geopolitical premium that had supported energy benchmarks earlier in the year.
The move to $75.70 underscores how quickly markets are discounting disruption fears as physical flow data improves.
This development follows reports that US and Iranian officials have made tangible progress in peace negotiations, a diplomatic shift that initially triggered the sell-off on Monday.