Thesis: WTI crude is in a sharp correction from its Q2 peak of $113/bbl as markets price in the imminent reopening of the Strait of Hormuz following the US-Iran interim peace agreement. The 34% decline from the April high reflects accelerating bearish momentum from three reinforcing factors: demand destruction from sustained high prices, OPEC+'s strategic shift toward market share recovery, and the unwinding of the Hormuz supply risk premium. However, the correction has overshot fundamentals — OECD inventories are draining at 3.8 mb/d and projected to reach their lowest level since 2003 by year-end. For crude buyers, the risk-reward is shifting. Immediate-term downside to $65-70/bbl remains if Hormuz reopens smoothly, but a failure of the peace talks would trigger a violent snap-back to $90-100/bbl. Best course: maintain coverage at current spot levels with tactical downside hedges, but prepare to lock in 12-month term volumes if WTI dips toward $65.