Global crude oil benchmarks extended their decline on Wednesday, with prices trading near four-month lows established in the previous session.
The sell-off reflects growing market confidence that shipping traffic through the Strait of Hormuz is stabilizing, reducing the immediate risk of severe supply disruptions.
This development comes after US President Donald Trump cited a record 19 million barrels of oil flowing through the strait on Monday, a figure that bolstered expectations of resilient supply chains.
Brent crude fell further in the session, erasing much of the risk premium that had accumulated since the start of the Iran conflict.
The price action suggests traders are increasingly pricing in a normalization of transit conditions, despite the ongoing geopolitical tensions in the region.
The shift in sentiment follows reports that more oil tankers stranded in the Gulf since the conflict began are now moving.
This development comes after US President Donald Trump cited a record 19 million barrels of oil flowing through the strait on Monday, a figure that bolstered expectations of resilient supply chains.