Brent crude prices fell approximately 6% in Tuesday trading, settling near $90.9 per barrel, while US WTI crude dropped 5.6%.
The sharp decline in energy benchmarks reflects market participants digesting the ongoing disruption to shipping traffic through the Strait of Hormuz, a critical chokepoint for global oil supplies.
The sell-off in oil comes as global equity markets also extended their decline, with broad-based losses in the technology sector leading the broader market weakness.
Investors are increasingly pricing in the possibility that the Federal Reserve will need to adjust its policy stance in response to the evolving economic landscape, adding to the risk-off sentiment across asset classes.
The drop in oil prices offers a temporary reprieve for consumers and businesses facing high energy costs, but the underlying supply risks remain unresolved.
The Strait of Hormuz continues to be a focal point for geopolitical tension, with any further escalation likely to reignite volatility in energy markets.