Global crude oil benchmarks extended their decline on Tuesday, sliding to levels not seen since before the outbreak of the current conflict.
The sell-off accelerated as market participants processed data indicating that shipping flows through the Strait of Hormuz are increasing, signaling a stabilization in one of the world’s most critical energy chokepoints.
Brent crude and West Texas Intermediate (WTI) both fell sharply, with prices hovering near four-month lows established in the previous session.
The move reflects a rapid repricing of the geopolitical risk premium that had been embedded in energy markets.
As tanker traffic resumes a more normal rhythm, the immediate threat of a supply disruption from the region appears to be receding, prompting traders to unwind long positions.
The decline marks a significant shift in market sentiment.