West Texas Intermediate crude slipped back under a strategic threshold on Thursday, recording a drop of more than four percent in intraday trading. The decline followed a statement from the U.S. President indicating a de-escalation of domestic unrest in Iran. Market watchers noted that trading volumes were elevated, with WTI futures turning negative versus Brent by midday before settling lower in the afternoon session. Analysts attributed the move to a renewed sense of supply security in the Middle East and a reduction in geopolitical risk premiums.

The gap between WTI futures and the global Brent benchmark expanded by approximately one dollar per barrel, marking the widest differential since last May. This widening discount reflects an anticipated surge in Venezuelan crude shipments redirected to U.S. ports following the change in Caracas’s leadership. Traders estimate that several million additional barrels will arrive on the Gulf Coast over the next quarter, bolstering inland inventories and exerting downward pressure on the domestic benchmark. Midstream operators have already reported increased utilization rates on key export terminals designed to handle heavy sour grades.