Crude oil benchmarks are shedding the last remnants of the war premium that had propped up prices during the recent US–Iran conflict.
The decline accelerates as commercial tanker traffic through the Strait of Hormuz returns to near-normal levels, confirming that physical supply disruptions have not materialized despite earlier fears.
Brent crude and WTI have erased recent gains, with prices retreating from their conflict-driven peaks.
The market is now pricing in a lower risk of sustained supply outages, as shipping data indicates that the chokepoint remains open for commercial traffic.
This repricing reflects a broader shift in investor sentiment, where headline risk is being discounted in favor of tangible flow data.
The shift underscores a key reality for energy traders: war rhetoric alone no longer sustains elevated oil prices without corresponding supply cuts.