Crude oil benchmarks extended their decline for a third consecutive day, driven by growing optimism that a diplomatic agreement could soon reopen the Strait of Hormuz.
The prospect of restoring normal shipping traffic through the critical chokepoint has alleviated immediate fears of a prolonged supply disruption in the Persian Gulf.
West Texas Intermediate (WTI) fell toward $75 a barrel, while Brent crude also retreated, hovering near four-month lows established in the previous session.
West Texas Intermediate (WTI) fell toward $75 a barrel, while Brent crude also retreated, hovering near four-month lows established in the previous session.
The sell-off reflects a broad shift in market sentiment as participants digest the potential for normalized trade flows.
This repricing comes after a period of heightened volatility linked to geopolitical tensions in the region.
The decline in energy prices is part of a wider risk-on rally across global markets.