Oil traders are flocking to options betting on a decline in Brent crude, with bearish wagers surging to unprecedented levels as investors reposition after a blistering rally in recent sessions.

Tuesday saw volume in Brent put options top roughly 764,000 contracts, the most on record, according to preliminary ICE Futures Europe data.

Much of the activity was concentrated in narrow put spreads, which are sometimes hedges for over-the-counter binary trades, as Saudi Arabia sought to restore flows on a vital pipeline and signs emerged of some diplomatic progress toward reopening the Strait of Hormuz.