Crude oil prices fell sharply on Friday, tracking weak global benchmarks as improving tanker movements through key West Asia shipping routes eased concerns over immediate supply disruptions.
The decline marks a continuation of the downward pressure that has characterized the market since late June, as traders reassess the likelihood of a prolonged bottleneck in the Strait of Hormuz.
Brent crude futures extended their losses, reversing a week of gains that had been driven by rising regional tensions.
The drop follows reports that former U.S. President Donald Trump has signaled hesitancy to resume direct talks with Iran, yet the market appears to be pricing in a de-escalation scenario rather than an escalation.
This repricing reflects a shift in sentiment from fear of disruption to confidence in the resilience of global supply chains.
The move comes after crude oil prices extended their decline for a third consecutive session on Thursday, driven by easing geopolitical tensions and mounting concerns over global supply balance.