Crude oil prices tumbled on Thursday, with West Texas Intermediate (WTI) breaching the $70 per barrel threshold for the first time in weeks.
August Brent futures also retreated, trading at $72.57 a barrel, down approximately 3.6% in the session.
The sell-off marks a significant reversal from Friday’s close, when Brent had settled at $73.
The sell-off marks a significant reversal from Friday’s close, when Brent had settled at $73.79 and WTI at $70.48.
The decline occurred despite reports that a US official attributed a recent attack on a shipping vessel to Iran.
Rather than triggering a risk premium, the incident appears to have been overshadowed by market speculation regarding a potential diplomatic resolution or reopening of the Strait of Hormuz.
Traders are pricing in the possibility that geopolitical tensions may ease, reducing the immediate supply disruption risk that has supported higher prices.