Crude oil prices fell on Thursday as markets absorbed assurances from Houthi rebels in Yemen that they would not close the Red Sea to shipping.
The retreat followed a sharp rally earlier in the week, during which benchmarks surged past the $100 per barrel threshold amid escalating fears of a total blockade of the vital waterway.
The price correction reflects a rapid shift in risk sentiment.
Traders who had priced in severe supply chain disruptions are now recalibrating positions based on the rebels' public commitment to keep the corridor open.
The move underscores how heavily geopolitical premiums have been loaded into energy valuations in recent sessions.
This development follows a period of intense volatility driven by Houthi attacks on commercial tankers.