WTI crude oil futures fell sharply, dropping over 2% in the pre-market session, driven by a combination of easing geopolitical tensions and signs of weakening demand. Reports of diplomatic progress between the U.S. and Iran regarding a potential reopening of the Strait of Hormuz have significantly reduced the geopolitical risk premium that recently supported prices. This move was amplified by a surprise build in U.S. crude inventories, indicating a potential supply surplus and softer near-term demand.