Global crude benchmarks closed lower on Thursday, with Brent and WTI shedding approximately 1% in session trade.
Despite the pullback, prices remained anchored near their highest levels since mid-June, reflecting persistent market anxiety over supply disruptions linked to the conflict in Iran.
The modest decline marks a pause in the broader volatility that has characterized energy markets in recent weeks.
Traders appear to be balancing the immediate risk of shipping disruptions in the Strait of Hormuz against earlier reports of diplomatic progress between US and Iranian officials.
That earlier optimism had sparked a relief rally and a retreat in oil prices earlier in the week, as markets priced in a potential de-escalation.
However, the failure of prices to break decisively lower suggests that the geopolitical risk premium remains intact.