Crude oil benchmarks are shedding the last remnants of the war premium that had propped up prices during the Middle East conflict.
The decline accelerates as commercial tanker traffic through the Strait of Hormuz returns to normal levels, removing the supply disruption risk that had driven a significant portion of recent price gains.
Multiple wire services, including Svenska Dagbladet and Brecorder, report that the normalization of shipping routes is the primary driver behind the latest sell-off.
With the physical threat to supply chains diminishing, traders are unwinding positions that had priced in prolonged regional instability.
The market is effectively repricing crude based on fundamental supply and demand rather than geopolitical fear.
This development marks a decisive shift from the previous weeks, where uncertainty over military escalation kept a risk buffer embedded in energy prices.