US crude oil prices have fallen below the $70 per barrel threshold, marking a significant shift in market sentiment as optimism grows regarding the security of the Strait of Hormuz.
The decline follows reports that Iran is preparing to restore normal traffic flows through the waterway as part of a potential agreement with the United States.
West Texas Intermediate (WTI) also softened, with US crude prices falling nearly 6% earlier in the week on the same news.
This development has alleviated immediate fears of prolonged supply disruptions in one of the world's most critical energy corridors.
Brent crude has mirrored this downward trajectory, dropping to its lowest level since the outbreak of the Iran conflict.
The benchmark fell toward $73 a barrel, reflecting a sharp reversal from recent highs driven by geopolitical risk premiums.
West Texas Intermediate (WTI) also softened, with US crude prices falling nearly 6% earlier in the week on the same news.