Oil prices slip amid US-Iran ceasefire deal

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.

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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.