WTI crude oil futures tumbled roughly 3% on Thursday following remarks by former President Donald Trump indicating that a U.S. military strike on Iran is unlikely in the near term. The drop marked the largest one-day percentage decline in two weeks, with WTI briefly sliding back below the key $60 per barrel threshold. Trading volume surged 25% above the 30-day average as risk-off sentiment gripped energy markets. Analysts at EnergyMarket Insights noted that long positions held by hedge funds fell by 12% over the past session, underscoring a rapid liquidation in response to reduced geopolitical risk.

Despite the sharp pullback, WTI remains up around 15% year-to-date, supported by persistent OPEC+ supply cuts and resilient global demand forecasts. Technical studies reveal that the 14-day Relative Strength Index has dropped from overbought territory into neutral levels, while the 50-day moving average is poised to act as support around the mid-$50s. Trading strategists caution that a break below this mark could trigger stops and exacerbate volatility, whereas a rebound would highlight sustained bullish momentum in the oil complex.