The sharp decline in oil prices persists even as President Trump confirmed that Iran breached a ceasefire agreement by targeting a vessel with drones. Following the close of trading in New York, the United States initiated a fresh military response against Iranian assets, signaling the total collapse of the recent de-escalation efforts between the two nations.

Investors appear to be prioritizing logistical developments over military volatility. The reopening of a critical Saudi Arabian offshore loading depot, combined with a surge in tanker traffic traversing the Strait of Hormuz, has eased fears regarding immediate supply disruptions. This influx of available crude is weighing heavily on energy company shares, overriding concerns about the escalating conflict.