Brent crude futures fell 96 cents, or 1.06%, to $89.78 a barrel in early trading, as traders weighed escalating military activity against resilient shipping data from the Persian Gulf.
The decline marks a continuation of the sell-off that has pushed benchmarks near four-month lows, driven by growing confidence that physical supply disruptions remain contained despite the broader geopolitical deterioration.
The price action reflects a divergence between headline risk and operational reality.
While the US-Iran conflict has expanded, tankers continue to navigate the Strait of Hormuz with relative normalcy.
This steady flow of Gulf supplies has effectively capped the risk premium that had previously supported higher oil prices, leading investors to shift focus from immediate flashpoints to the broader, more stable supply outlook.
This development extends the downward trajectory observed over the past week.