Global crude oil benchmarks have retreated sharply, falling more than $3 to reach their lowest levels since before the start of the Iran war in February.
The sell-off reflects a rapid normalization of shipping routes and a shift in market sentiment, with traders increasingly betting that a surge in crude supplies could outweigh lingering geopolitical risks in the Middle East.
Brent crude and WTI crude have both dropped significantly, marking a decisive turn in the energy market.
The price decline suggests that the immediate supply disruption fears that drove prices higher during the initial stages of the conflict are receding.
Instead, the focus has shifted to the potential for a global crude oversupply, as production resumes and shipping bottlenecks ease.
This development comes as tankers resume transit through the Strait of Hormuz, a critical chokepoint for global oil supplies.