Brent crude extended its decline on Friday, falling more than 3% to around $73 per barrel as easing geopolitical tensions and improving oil flows from the Middle East continued to pressure prices.

The recent risk premium that lifted crude prices during the Iran conflict has largely faded after signs of a sustained ceasefire and the gradual normalization of tanker traffic through the Strait of Hormuz. With supply disruption fears easing, traders have shifted their focus back to underlying market fundamentals.

Oil also remains under pressure from concerns about global demand. Slowing economic activity in several major economies and expectations for ample supply have weighed on sentiment, reinforcing the recent pullback in crude prices. Analysts have also begun lowering their near-term oil price forecasts as geopolitical risks recede and supply conditions improve. (The Wall Street Journal)

Despite today's decline, investors continue to monitor developments in the Middle East, as any renewed disruption to regional oil exports or shipping routes could quickly restore volatility to the energy market.