Crude oil prices extended their decline on Wednesday, with benchmarks sliding toward four-month lows as shipping traffic through the Strait of Hormuz began to normalize.
The sell-off reflects growing market confidence that the immediate threat to global energy flows has receded following recent diplomatic developments.
Brent crude fell sharply in the session, pressured by the visible return of commercial vessels to the critical waterway.
The price action underscores how quickly traders are repricing the risk premium that had built into energy markets during the period of heightened tension.
With the physical bottleneck easing, the supply-side squeeze that had supported higher prices has largely evaporated.
The development follows reports that stranded tankers have resumed transit, a move that significantly reduces the likelihood of a prolonged disruption to global oil supplies.