Brent crude has fallen back below the $80 per barrel threshold, shedding much of the geopolitical premium that had accumulated during the recent escalation in the Persian Gulf.
The decline in energy prices coincides with a sharp rally in precious metals, as spot gold climbed to a seven-week high on Thursday.
The divergent moves reflect shifting market sentiment as investors weigh the prospect of restored shipping routes against lingering uncertainty.
The price action is driven by growing optimism that the Strait of Hormuz could reopen soon.
Reports indicate that US President Donald Trump has vowed to finalize an agreement with Iran, signaling a potential de-escalation of the conflict that has disrupted global energy flows.
This diplomatic development has tempered risk appetite, leading to a sell-off in oil futures while boosting demand for gold as a safe-haven asset.
The retreat in oil prices marks a significant shift from earlier weeks when tanker explosions and shipping risks in the Strait kept Brent crude elevated.
The market is now pricing in a reduced probability of prolonged supply disruptions, although the pace of the decline suggests caution remains.