Brent crude prices slipped more than 3% as fears of U.S. military action against Iran faded. Traders had bid up oil earlier in the week on geopolitical risk, but that premium evaporated quickly. With the immediate threat subsiding, markets refocused on underlying supply dynamics and the prospect of a calmer geopolitical outlook.

The price reversal underscores how quickly sentiment can shift in energy markets. Earlier worries centered on potential disruptions to the Strait of Hormuz, a chokepoint for global shipments. Now, the return of oversupply fears is weighing on prices, as production remains robust and demand growth shows signs of slowing in major economies.

Looking ahead, traders will watch for any fresh signals from Washington or Tehran that could reignite tensions. The market remains sensitive to geopolitical headlines, but fundamentals are back in focus. If no new disruptions emerge, prices could face continued downward pressure from ample global inventories and weaker-than-expected consumption.