Crude oil benchmarks are tracking for another weekly loss, with prices hovering near four-month lows established earlier in the session.
The sell-off reflects growing market confidence that shipping traffic through the Strait of Hormuz has stabilized, dampening immediate supply disruption fears.
However, analysts caution that this calm may be deceptive.
Reports indicate that tanker traffic through the critical chokepoint remains sluggish, with shipowners increasingly factoring in the risk of renewed conflict when planning routes.
This structural hesitation suggests that the market's current pricing may not fully account for the fragility of the supply chain.
The Strait of Hormuz remains a vital artery for global oil exports, and any sudden escalation or routing change could send prices soaring.