Global crude oil benchmarks closed lower on Thursday, with Brent and WTI posting declines amid heightened volatility.
The sell-off reflects a rapid normalization of shipping routes and a fading geopolitical risk premium, despite ongoing tensions in the Middle East and continued activity by Houthi forces in the Red Sea.
This move extends a broader downward trend for crude oil, which has retreated more than $3 per barrel to reach its lowest levels since before the start of the Iran conflict in February.
Brent crude fell sharply, while WTI followed suit, as investors digested the latest developments.
The price action underscores a shift in market sentiment, where the immediate threat of supply disruption is being outweighed by broader macroeconomic headwinds and easing logistical constraints.
Trading remained choppy throughout the session, with prices confined to a narrow range as participants weighed conflicting signals from the region.
This move extends a broader downward trend for crude oil, which has retreated more than $3 per barrel to reach its lowest levels since before the start of the Iran conflict in February.