WTI crude oil futures fell sharply after U.S. Treasury Secretary Scott Bessent indicated that an agreement with Iran to reopen the Strait of Hormuz could be reached as soon as today or tomorrow. The potential for a deal eased market fears of a significant supply disruption in the Middle East, leading to a rapid decline in oil prices. This diplomatic development outweighs concerns about inventory levels for now, removing a significant geopolitical risk premium from the market.