WTI crude oil futures fell sharply in the pre-market session, dropping over 5% as geopolitical tensions in the Middle East appeared to ease. Reports of a pause in military strikes between the United States and Iran have renewed hopes for a diplomatic resolution, reducing fears of a wider conflict that could disrupt global oil supplies. This de-escalation prompted a significant unwinding of the geopolitical risk premium that had recently supported prices. Softer economic data from China and a stronger US dollar also contributed to the downward pressure on oil.