Crude oil benchmarks have retreated to levels last seen before the outbreak of Middle East hostilities, marking a decisive end to the war premium that had sustained prices for months.
The shift reflects growing confidence among traders that the Strait of Hormuz is fully reopening to commercial shipping, removing the primary supply disruption risk that had buoyed the market.
56% to $74.84 a barrel on Friday, sliding toward their lowest point in four months.
Brent crude futures fell 0.56% to $74.84 a barrel on Friday, sliding toward their lowest point in four months.
The decline underscores how rapidly markets are adjusting to the normalization of shipping routes.
With physical evidence confirming the safe passage of tankers through the chokepoint, the speculative bid that had propped up energy prices has largely dissipated.
This repricing represents a significant pivot from the heightened volatility that characterized the early stages of the conflict.