The potential for a ceasefire in Gaza following US officials' optimistic statements about imminent peace negotiations, overshadowed market sentiment. The easing of Middle East tensions, traditionally a driver of oil price volatility, contributed to the market's sharp downturn.
International crude oil benchmarks rebounded sharply on Wednesday, 17 July, following an Energy Information Administration (EIA) report revealing a significant drop of 4.87 million barrels in US commercial crude inventory—far exceeding predictions.