Oil prices decline as markets weigh a potential 60-day US-Iran ceasefire extension easing Strait of Hormuz shipping risks.
West Texas Intermediate crude fell to $87.20 per barrel in Asian trading, extending losses for a third day. The drop follows reports of a tentative 60-day ceasefire extension between the US and Iran, which could allow unrestricted shipping through the Strait of Hormuz if finalized.
Prices have slid nearly 15% this month amid optimism over negotiations, though key hurdles remain, including Iran’s nuclear program and sanctions relief. Analysts note the deal’s approval is uncertain, with US leadership yet to sign off.
US crude inventories declined by 3.3 million barrels last week, missing forecasts of a 4.1-million-barrel draw. The smaller-than-expected reduction added to bearish sentiment in energy markets.