August WTI Crude Oil futures dropped as tensions eased.

August WTI Crude Oil futures experienced a sharp decline on Wednesday, falling over 4.67% and breaking below the 70 level. The sell-off was driven by an accelerated unwinding of wartime risk premiums as confidence grows following the U.S. and Iran peace deal, with the IMO confirming safety guarantees for hundreds of tankers crossing the Strait of Hormuz. Prices are now trading roughly 40% below their conflict peak. In domestic data, the latest EIA report revealed a crude inventory draw of 6.1 million barrels, bringing total U.S. stocks to 412 million barrels-well below the five-year average. Gasoline demand remains firm at 8.8 million barrels per day despite a 2.1 million barrel build in inventories. Natural gas futures also caught attention, climbing over 1% to 3.18, finding support ahead of tomorrow's EIA report even as updated forecasts signal cooler weather and Permian Basin pipeline capacity expands.