Crude oil prices extended their decline on Friday, falling more than 3% to set up for steep weekly losses.
The sell-off was driven by fresh shipping data showing oil tankers continuing to exit the Strait of Hormuz, signaling that the critical chokepoint is reopening despite recent tensions.
This normalization of traffic eased supply fears that had spiked following the attack on a cargo vessel near Oman the previous day.
Brent crude and US West Texas Intermediate (WTI) both faced heavy selling pressure.
The market is rapidly repricing the geopolitical risk premium that had supported higher prices earlier in the week.
With tanker movements resuming, traders are unwinding positions that had been hedged against a potential supply disruption in the Persian Gulf.