Brent crude futures retreated Thursday, shedding ground after a significant rally the previous day.
The benchmark North Sea blend traded slightly above $89 a barrel for September delivery before pulling back, as market participants recalibrated their exposure to geopolitical risks in the Middle East.
The price action reflects a cooling of the risk premium that had driven prices higher.
Traders appear to be taking profits following the sharp advance, suggesting that the immediate fear of a severe supply disruption has moderated, at least in the short term.
The volatility underscores how sensitive energy markets remain to headlines from the region, even in the absence of confirmed physical outages.
This development follows a period of relative stability in oil markets.