Oil prices fell more than 1% on Friday, May 29, and were on track for their steepest weekly decline since early April 2026.
The development follows reports that the United States and Iran had reached a potential deal to extend a ceasefire.
Brent crude futures for July fell 1.32% or $1.24 to $92.47 a barrel at 0656 GMT, while U.S. oil futures fell $1.38, or 1.55%, to $87.52 a barrel.
Brent has plunged 10.5% this week – the steepest fall since the week that ended on April 6, while WTI has dropped 9.2% – the biggest weekly loss since the week that ended on April 13.
Sources told Reuters that the U.S. and Iran reached an agreement on Thursday to extend a ceasefire and lift restrictions on shipping through the Strait of Hormuz.
Oil prices soar after US, Iran trade strikes
However, United States President Donald Trump has yet to approve it and Iranian state media said it had not been finalised.
“Consensus remains that the conflict is over, and a deal is coming. As long as this narrative holds, crude oil has room to extend its decline toward trendline support in the low $80s,” IG analyst Tony Sycamore said.
Prices have been volatile in recent sessions, swinging by as much as $6 for both benchmarks on conflicting signals over a possible end to the three-month-old Iran war and the potential reopening of the Strait of Hormuz – a conduit for roughly a fifth of the world’s oil and liquefied natural gas supplies.
- Dembele to Arsenal: PSG hungry to win Champions League - May 29, 2026
- FCTA threatens revocation of event centres, hotels hosting illegal groups - May 29, 2026
- APC speaks on fielding non-indigene in Ekiti Reps primaries - May 29, 2026
