Brent and WTI crude contracts fall near 10% this week as diplomatic progress reduces supply disruption fears.
Oil prices extended declines Friday, with Brent crude down 1.2% to $92.55 and WTI falling 2.0% to $87.11. Both benchmarks are poised for their steepest weekly drop since early April, down roughly 10% amid easing geopolitical tensions.
Reports of a preliminary U.S.-Iran ceasefire agreement, extending a truce by 60 days, weighed on sentiment. The deal, if finalized, could stabilize shipping flows through the Strait of Hormuz, a critical chokepoint for global oil supplies. However, volumes remain below pre-conflict levels, keeping a risk premium embedded in prices.
Traders are balancing diplomatic optimism against lingering supply risks, with ING analysts noting the market has already priced in some resolution. Final approval from U.S. leadership is still pending.