Crude oil prices retreated further on Wednesday as reports confirmed that tanker traffic through the Strait of Hormuz is returning to normal levels.
The improvement in shipping conditions follows the opening of a temporary corridor by Oman, aimed at de-escalating transit risks in the region.
Brent crude futures fell more than 1% in early trading, extending a multi-day decline that has seen prices slide toward four-month lows.
This development has significantly reduced the immediate threat of a supply disruption, prompting a rapid repricing of geopolitical risk premiums in energy markets.
Brent crude futures fell more than 1% in early trading, extending a multi-day decline that has seen prices slide toward four-month lows.
West Texas Intermediate (WTI) crude dropped nearly 6% on Tuesday, reflecting the market's swift reaction to emerging signs of diplomatic progress between the United States and Iran.
The sell-off underscores how quickly investors are unwinding the risk premium that had been built into oil prices amid fears of a prolonged blockade.