WTI crude oil futures fell sharply, extending a sell-off from the previous session, driven by reports of a potential diplomatic breakthrough in the conflict involving Iran. News emerged on October 20th of a mediation proposal that was reportedly approved by the United States and had preliminary consent from Iran, easing fears of a wider conflict that could disrupt global supply. This development reduced the geopolitical risk premium that had been supporting prices, leading to significant long liquidation. The move occurred despite ongoing tensions and attacks on shipping in the Strait of Hormuz.