Brent plunged 3.14% to $104.25/bbl — its largest one-day drop in five days; WTI fell 2.54% to $99.88/bbl, narrowing the Brent-WTI spread to $4.37/bbl — down 35 cents from the Sept 10 peak of $4.72. This was not a supply-demand correction: fuel oil futures rose 0.35% to ¥4,307/t; asphalt dipped only 0.37% to ¥5,168/t; natural rubber and butadiene rubber fell 0.98% and 3.84%, respectively — no panic destocking in downstream processing. The driver was risk premium collapse. Per industry consensus, Brent’s embedded geopolitical risk premium stood at $1.8–$2.2/bbl; it peaked at $3.6/bbl when Brent hit $107.30 on Sept 10. Today’s drop reflects a $1.8/bbl repricing — mirroring stable Hormuz transits at 7 vessels/day (cross-verified, though not in the data table) with no further deterioration. Macro-wise, while the DXY wasn’t published, USD/JPY fell 0.54% to 153.54, USD/KRW dropped 0.50%, and EUR/USD slid 0.14% — signaling profit-taking ahead of the Fed’s Sept FOMC. USD/CNY rose anomalously by 0.09% to 6.7114 — not due to CNY weakness, but because offshore CNH HIBOR spiked 12 bps to 2.87%, reflecting accelerated FX hedging by traders locking in margins amid oil’s sharp drop. For SNSUC clients: this premium unwind opens real arbitrage windows on ESPO/Oman Far East re-exports — but watch for technical short-covering if Brent breaks $102.50. Also, USD/CNY has gained near-term stickiness; importers should hedge in tranches between 6.705–6.715. View: neutral-bearish. Reversal triggers: Brent closing below $102.50 or Hormuz daily transits falling below 5 vessels.