Crude oil prices pulled back from recent peaks on Wednesday as traders engaged in profit-taking following a sharp rally driven by geopolitical tensions.
The retreat in energy benchmarks occurred despite renewed US strikes on Iran, which have heightened fears of potential supply disruptions in the strategically critical Strait of Hormuz.
Brent crude futures eased in the session, reversing some of the upward momentum that had been fueled by escalating military activity.
The price action suggests that while the underlying supply risk remains a potent driver, short-term positioning has become stretched, prompting a wave of selling from those who bought into the initial shock of the strikes.
The Strait of Hormuz remains the focal point for market anxiety, as it serves as a vital chokepoint for global oil shipments.
Any further escalation that threatens to close or restrict passage through the strait could quickly reverse the current pullback and send prices higher.