Crude oil prices retreated to their lowest level in three weeks on Tuesday, driven by fresh optimism that the Strait of Hormuz could reopen to commercial traffic.
The decline marks a significant shift in market sentiment after weeks of volatility linked to shipping disruptions in the critical waterway.
US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent both indicated that diplomatic negotiations with Iran have progressed to a stage where shipments can resume.
Their comments suggest a potential resolution to the transit blockade that has weighed heavily on global energy flows and freight rates.
The development follows earlier reports that tanker traffic through the strait was beginning to normalize, a trend that has already started to cool investor anxiety across Asia-Pacific markets.
The prospect of a stabilized supply route reduces the immediate risk premium embedded in energy prices.