Brent crude futures fell 20 cents, or 0.3 percent, to $77.70 a barrel in early trading as investors recalibrated risk around the Strait of Hormuz.
The modest pullback reflects a broader market shift away from immediate supply disruption fears, driven by signs of renewed diplomatic engagement between the United States and Iran.
The price action underscores how quickly the geopolitical risk premium can evaporate when diplomatic channels reopen.
After days of volatility sparked by Iran’s insistence on control over the chokepoint despite sanctions lifts, the market is now pricing in a lower probability of a sudden transit blockade.
Traders are watching for confirmation that shipping routes remain open and that insurance premiums for vessels transiting the corridor do not spike.
This development follows a period of heightened tension where global crude prices had retreated on Monday amid emerging signs of diplomatic progress.