WTI crude oil futures have dropped over 2% as renewed diplomatic efforts between the United States and Iran are easing fears of a broader conflict in the Middle East. This has led to an unwinding of the geopolitical risk premium that had recently pushed prices to near six-month highs. The decline comes despite continued attacks by Houthi rebels on Saudi Arabian oil infrastructure, which is providing a floor to prices. Recent remarks from former President Trump ruling out an immediate military strike against Iran also contributed to the negative sentiment.