Brent crude declined roughly 10% week‑over‑week as ship transits through the Strait of Hormuz improved, pushing Middle East benchmarks into contango. The drop signals a easing of the Iran‑war risk premium, affecting revenues for Middle East exporters, influencing global inflation through fuel costs, and altering hedging strategies for energy traders. Oil traders and investors, Middle East producers (notably Iran and Gulf states), international consumers of fuel, and shipping firms monitoring Hormuz traffic. If Hormuz flows remain steady, Brent may stay under pressure; any renewed disruption or sanctions escalation could quickly restore the risk premium and push prices higher. Brent futures fell about 10% over the past week after market participants judged that the risk of a Strait of Hormuz shutdown is diminishing. Middle East crude benchmarks slipped into contango, indicating that near‑term prices are now lower than forward contracts. The move reflects a recalibration of the geopolitical premium that had been built into oil prices amid Iran‑related tensions.
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