Crude oil benchmarks are on track for a significant weekly decline as shipping activity through the Strait of Hormuz shows signs of stabilizing.
The easing of immediate transit risks has removed a key premium from energy prices, with traders pricing in a return to more normal supply conditions despite the recent geopolitical turbulence.
Brent crude fell nearly 4% on Friday, extending losses that have pushed prices toward four-month lows.
Brent crude fell nearly 4% on Friday, extending losses that have pushed prices toward four-month lows.
The sell-off reflects growing market confidence that the acute phase of the shipping disruption is passing.
While an initial accord aimed at ending the conflict helped facilitate the movement of vessels, the market is now focusing on the pace at which full throughput can be restored.
Analysts caution that the path to normal supply levels will not be immediate.