WTI crude oil futures have fallen sharply after U.S. President Donald Trump signaled a de-escalation of the conflict with Iran, stating the war is 'effectively over' and that further military action is not currently necessary. This has eased market fears of a wider conflict in the Middle East that could disrupt global oil supplies. The drop extends losses from the previous session as diplomatic efforts are perceived to be gaining traction, reducing the geopolitical risk premium in oil prices.