WTI crude oil futures have fallen significantly after US President Donald Trump stated that further military strikes against Iran are "highly unlikely" if negotiations over Tehran's nuclear program and the reopening of the Strait of Hormuz progress. This has led to a reduction of the geopolitical risk premium that had been supporting oil prices. The decline was also influenced by reports of OPEC increasing production and a broader risk-on sentiment in the market, with capital rotating out of the energy sector.