Brent crude futures fell 78 cents, or 1.0 percent, to $76.30 a barrel on Wednesday, extending a multi-day decline as market participants digested signs that shipping disruptions in the Strait of Hormuz are easing.
The sell-off reflects growing confidence that the backlog of oil tankers previously stranded in the Gulf is clearing, allowing for smoother crude flows through the critical chokepoint.
The price action underscores a swift repricing of geopolitical risk premiums.
With the immediate threat of prolonged transit delays receding, traders have reduced the supply disruption hedge that had supported higher valuations earlier in the week.
Brent is now trading near four-month lows, a level not seen since late February, as the market shifts focus from acute route exposure to broader demand fundamentals.
This development marks a notable shift from the heightened tensions that characterized the corridor in recent weeks.