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 immediate threat of supply disruption.
Brent crude fell more than 1% in early trading, continuing a broader weekly slide.
Brent crude fell more than 1% in early trading, continuing a broader weekly slide.
The move signals that investors are actively unwinding the risk premium that had supported energy prices amid fears of prolonged chokepoint closures.
As the perceived probability of a sustained blockade recedes, the market is repricing the likelihood of normal flow resumption.
Reports indicate that additional oil tankers previously stranded in the Gulf are set to move out of the region.