Brent crude futures have retreated to levels last seen before the escalation of tensions in the Persian Gulf, as shipping activity through the Strait of Hormuz has returned to normal patterns.
The sharp reversal in energy markets underscores how quickly traders are unwinding risk premiums when physical supply disruptions fail to materialize.
The price correction follows a period of heightened volatility driven by fears that military posturing in the region would choke off a significant portion of global oil exports.
With tanker traffic flowing freely again, the immediate threat to supply chains has diminished, allowing markets to refocus on fundamental demand drivers rather than geopolitical tailwinds.
This development marks a significant shift from the recent narrative that dominated energy trading desks.
Just days ago, the prospect of a prolonged blockade was keeping a lid on prices and forcing traders to hedge against potential shortages.