Oil prices retreated Wednesday after President Donald Trump signaled a de-escalation in Iran's violent crackdown on protesters. West Texas Intermediate crude erased earlier gains following Trump's comments that executions have ceased. This reversal came just one day after the president canceled meetings with Iranian officials and urged citizens to protest, a shift that had briefly spiked market anxiety.

Markets had been pricing in a significant geopolitical risk premium following Trump's weekend warning of potential U.S. military intervention. Traders feared supply disruptions from the OPEC member, which could tighten global markets. With tensions apparently cooling, that premium is now evaporating, pushing WTI down 1.3% to near $60 per barrel as the immediate threat to crude flows diminishes.

The situation remains fluid as the White House monitors developments in Tehran. Human rights groups report thousands of protesters have been killed in the unrest, which began over economic conditions but escalated into a broader challenge to the regime's authority. Any renewed crackdown could quickly reverse today's price moves and reignite fears of supply disruptions.