Oil prices retreat as traders bet on eased Middle East tensions and improved supply routes through the Strait of Hormuz.
West Texas Intermediate crude fell to $93.25 in early Asian trading Thursday, extending losses below $93.50. The decline reflects market optimism over potential diplomatic progress to reopen the Strait of Hormuz, a critical chokepoint for global oil shipments.
Prices had stabilized near $94 earlier this week amid geopolitical risks in the Middle East. The shift follows reports suggesting negotiations could ease regional tensions, reducing supply disruption fears.
No immediate market reaction data was provided, but the move signals traders are pricing in reduced risk premiums for oil flows.