Brent crude has fallen back to levels seen before the recent escalation in the Middle East, as shipping data indicates a rapid normalization of tanker movements through the Strait of Hormuz.
The retreat in energy prices suggests that markets are quickly unwinding the risk premium that had been priced in during the peak of the crisis.
The price correction follows a period of heightened volatility driven by fears of supply disruption.
However, with no new reports of attacks on commercial vessels and a steady flow of exports from the region, investor sentiment has shifted from caution to relief.
The normalization of shipping routes has removed the immediate threat to global oil supplies, allowing prices to stabilize.
This development marks a significant shift from the previous week, when Brent crude surged on concerns over direct military engagements.