A 60-day ceasefire extension may ease Strait of Hormuz shipping disruptions, capping crude volatility amid mixed session gains.
Crude oil futures closed mixed Thursday after the US and Iran agreed to extend their ceasefire by 60 days. The deal could allow resumed shipments through the Strait of Hormuz, a key chokepoint for global oil flows.
Prices had seesawed earlier in the session as traders weighed the potential easing of supply risks against broader demand concerns. The prior ceasefire, set to expire this week, had already reduced regional tensions but left markets on edge.
The tentative agreement follows weeks of indirect negotiations, with no immediate confirmation of additional oil exports from Iran. Market reaction remained muted, reflecting cautious optimism.