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 swift market reassessment of supply risks in the Middle East.
Oil markets are rapidly shedding the war premium that had buoyed crude prices throughout the Middle East conflict.
The decline accelerates the repricing of energy assets as traders conclude that the immediate threat to Strait of Hormuz flows has diminished significantly.
CNBC’s Jim Cramer argues that this shift will soon push benchmarks back to pre-tension levels, suggesting the market is moving past the peak of the geopolitical risk cycle.
The commentary underscores a broader sentiment that the initial shock to supply chains has been absorbed and that logistical bottlenecks are easing.