Crude oil benchmarks extended their decline on Wednesday, with prices hovering near four-month lows established in the previous session.
The sell-off reflects growing market confidence that shipping traffic through the Strait of Hormuz is stabilizing, reducing the premium investors have placed on supply disruption risks since the start of the Iran conflict.
Brent crude fell sharply in the session, tracking lower as traders digested reports that more oil tankers stranded in the Gulf are set to move.
The price action underscores a shift in sentiment from acute shortage fears to a more normalized view of regional logistics, even as the broader geopolitical situation remains unresolved.
The development follows earlier reports that Iran has assured no tolls would be imposed on Strait of Hormuz transit, a statement that helped ease shipping risk perceptions.
Multiple wire services, including Reuters and Channel NewsAsia, have highlighted the easing of immediate bottlenecks as a key driver for the week’s losses.