Crude oil benchmarks extended their decline on Wednesday, with prices hovering near four-month lows established in the previous session.
The sell-off reflects growing market confidence that shipping traffic through the Strait of Hormuz could resume, driven by diplomatic progress between the United States and Iran.
The latest catalyst was the commencement of talks between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu.
Markets interpreted the high-level engagement as a positive signal for a broader regional de-escalation, prompting further selling in energy futures.
Brent crude fell sharply in the session, continuing a downward trajectory that began earlier in the week.
Despite the price drop, physical supply risks remain acute.