Crude oil benchmarks have fallen to levels not seen since before the outbreak of the Iran-Israel war, as shipping flows through the Strait of Hormuz have effectively normalized.
US Energy Secretary Chris Wright confirmed that throughput in the critical chokepoint is now close to pre-war volumes, signaling a rapid dissipation of the supply disruption fears that had propped up prices since February.
The normalization of shipping activity has accelerated the sell-off in global crude markets.
Brent and WTI benchmarks slid sharply on Wednesday, extending losses into Thursday's session as traders unwound the geopolitical risk premium.
The price action reflects a swift repricing of supply security, with the market shifting focus from potential disruption to the reality of restored flow.
This development marks a significant shift in the energy market's assessment of Middle East stability.