WTI crude dropped 1.97% to $80.98 per barrel in early Asian trading, while Brent crude slipped 1.77% to $86.80. This cooling follows comments from President Trump regarding ongoing diplomatic discussions with Iran. While both nations maintain a posture of readiness to resume hostilities, the current pause has shifted market focus toward fundamental indicators of demand destruction.

Rising inventory levels reported by the EIA suggest that high prices are finally curbing consumption. Traders are now awaiting data from the American Petroleum Institute to confirm whether these builds represent a sustained trend. Despite the easing of direct U.S.-Iran tensions, shipping disruptions in the Red Sea persist. Houthi attacks on Saudi installations continue to rattle supply chains, though analysts note the group lacks the strategic leverage Iran wields over the critical Strait of Hormuz. For now, the market remains tethered to the fragile diplomatic window, ready to pivot if the current quiet proves temporary.