Global crude oil benchmarks have fallen sharply, with Brent crude retreating to its lowest levels since before the outbreak of the Iran conflict in February.
The sell-off reflects a rapid normalization of shipping routes through the Strait of Hormuz, which has alleviated immediate supply concerns that had previously propped up prices.
As shipping pressure eases, the premium associated with Hormuz risk is unwinding, pushing benchmarks down by more than $3 from recent peaks.
Multiple wire services, including Dagbladet and ERT News, report that the gradual restoration of vessel passage through the strategic chokepoint is increasing global supply availability.
This development marks a significant shift in market sentiment, as traders digest the reduced risk of physical disruption in one of the world's most critical energy corridors.
The price correction follows a period of heightened volatility driven by geopolitical tensions.
As shipping pressure eases, the premium associated with Hormuz risk is unwinding, pushing benchmarks down by more than $3 from recent peaks.