Global crude oil benchmarks have collapsed to levels last seen before the outbreak of Middle East hostilities in February, marking a decisive end to the war premium that had propped up prices for months.
The retreat reflects a rapid normalization of shipping routes and a sharp decline in geopolitical risk sentiment among traders.
Analysts had previously warned that a sustained closure of the Strait of Hormuz and a halt to Persian Gulf exports could have pushed Brent toward $150 a barrel.
Brent crude and West Texas Intermediate have fallen approximately 40% over the past quarter.
The sell-off accelerated as markets digested the reality that the Strait of Hormuz remains open for commercial traffic, dispelling earlier fears of a prolonged blockade.
The price action underscores how quickly speculative risk buffers can dissolve when supply disruptions fail to materialize.
Analysts had previously warned that a sustained closure of the Strait of Hormuz and a halt to Persian Gulf exports could have pushed Brent toward $150 a barrel.