Crude oil benchmarks fell for a third consecutive session on Thursday, driven by easing concerns over potential supply disruptions in the Strait of Hormuz.
The sell-off reflects a sustained reduction in geopolitical risk premiums as markets digest reports of diplomatic progress between the United States and Iran.
Brent crude futures declined during the session, continuing a downward trajectory that has seen prices slide approximately 1% over the past three days.
Brent crude futures declined during the session, continuing a downward trajectory that has seen prices slide approximately 1% over the past three days.
The move follows a broader weekly decline of more than 3%, as traders reassess the likelihood of physical supply interruptions in one of the world's most critical energy chokepoints.
The price correction was bolstered by fresh shipping data indicating that oil tankers are continuing to exit the Strait of Hormuz, signaling that maritime traffic remains largely uninterrupted.
This operational reality, combined with Qatar's report that Washington and Tehran have made progress in talks, has helped calm investor nerves regarding a potential blockade or escalation.