Crude oil benchmarks erased recent gains on Thursday as market focus shifted from headline risk to actual supply flows.
Despite reports of escalating attacks in the Gulf, investor anxiety appears to be waning as shipping traffic through critical regional chokepoints remains steady.
Global crude prices have retreated sharply from their highs, falling more than $3 to reach levels not seen since before the start of the Iran conflict in February.
The price pullback suggests that traders are prioritizing physical throughput data over geopolitical rhetoric, a trend that has characterized the market's reaction to Middle East tensions in recent weeks.
This repricing continues a broader normalization of energy markets following the peak of supply fears earlier in the year.
Global crude prices have retreated sharply from their highs, falling more than $3 to reach levels not seen since before the start of the Iran conflict in February.
The stabilization of shipping routes has been the primary driver of this decline, effectively unwinding the risk premium that had been baked into prices.