Crude oil futures are settling sharply lower, down -$10.10 (-10.28%) to $88.13, after trading in a wide range between a high of $101.67 and a low of $84.37.The catalyst for the selloff came after President Trump’s Truth Social post, which signaled productive talks between the U.S. and Iran and a five-day postponement of planned strikes on Iranian energy infrastructure. That shift in tone eased immediate supply concerns and triggered a sharp unwind of the geopolitical premium priced into crude.For now, the market is treating the development as anear-term de-escalation, with a classic risk-on reaction: stocks higher, yields lower, and oil sharply down. That said, there is still uncertainty around the details, and if this situation follows a pattern similar to other conflicts (I. E., Israel/Hamas), traders should be prepared for a start-stop dynamic in negotiations.From a technical perspective, the move lower was decisive.Crude has broken back below its 100- and 200-hour moving averages at $95.61 and $94.78, reinforcing downside momentum. The subsequent bounce stalled at $93.31, well below those moving averages, keeping sellers firmly in control.The price has also moved below the 50% retracement of the rally from the February 17 low to the March 9 high, which comes in at $90.70. That level now becomes a key pivot:Holding near $90.70: Would suggest a more modest, corrective declineSustained move below: Opens the door for further downside pressureIt’s also worth keeping the broader context in mind. Prior to the conflict escalation, crude was trading near $67.25 (Feb 27). Even after today’s sharp drop, prices at $88.13 remain roughly 31% higher, highlighting how much geopolitical risk is still embedded in the market.In short, the fundamentals may have shifted in the short term—but technically, sellers are in control unless key resistance levels are reclaimed. This article was written by Greg Michalowski at investinglive.com.