Brent crude has broken through the $70 per barrel threshold, marking the lowest level since the outbreak of the Iran conflict.
The decline reflects a decisive shift in market sentiment as shipping activity in the Strait of Hormuz has rapidly resumed, effectively neutralizing the supply disruption fears that had previously propped up energy prices.
The benchmark fell to approximately $71 on Friday, signaling that the risk premium embedded in oil markets is unwinding faster than anticipated.
The benchmark fell to approximately $71 on Friday, signaling that the risk premium embedded in oil markets is unwinding faster than anticipated.
Traders are responding to tangible improvements in shipping logistics rather than just diplomatic signals, with tanker flows returning to near-normal levels.
This operational reality has forced a repricing of the supply outlook, stripping away the geopolitical buffer that had sustained higher prices.
According to Folha de S.Paulo, the surge in traffic through the chokepoint has been the primary driver of the sell-off.