Crude oil futures settled at $79.26, down $3.35 or -4.06% on the day. The decline in crude oil today was driven primarily by a sharp unwinding of the geopolitical risk premium rather than a sudden change in supply or demand fundamentals. The market continued to price out the risk premium after the U.S. paused additional military strikes on Iran, raising hopes that the conflict will not escalate further. Although Iran denied direct talks, traders focused on the reduced likelihood of an immediate military escalation. Although Iran denied direct talks, traders focused on the reduced likelihood of an immediate military escalation.