Global crude oil benchmarks extended their decline on Thursday, moving closer to pre-war levels as stranded tankers began exiting the Strait of Hormuz.
The movement of vessels follows an initial accord aimed at ending the US-Israeli war with Iran, significantly easing immediate supply concerns that had driven prices higher in recent weeks.
Brent crude and WTI fell sharply in the session, reflecting the rapid repricing of geopolitical risk.
The market reaction underscores how heavily the conflict premium had been embedded in energy prices; with the physical threat to shipping routes receding, traders are quickly unwinding those positions.
The decline continues a trend that began Wednesday, when prices traded near four-month lows as early signs of de-escalation emerged.
The Strait of Hormuz remains the world’s most critical oil transit chokepoint, and its reopening is a pivotal moment for global energy flows.