Khaberni - Oil futures fell more than two percent on Friday, heading for their biggest weekly loss since early April, after reports of the United States and Iran reaching a ceasefire extension agreement.
Brent crude futures for July settled at $92.05 a barrel on Friday, falling $1.66, or 1.8 percent. West Texas Intermediate crude futures fell $1.54 or 1.7 percent at the settlement to $87.36 a barrel.
John Kilduff, a partner at Again Capital, said, "It is clear that the market believes the ceasefire will be very easy and that the matter is completely over."
The ongoing war between the United States and Iran, which has lasted for three months, has repeatedly hinted at an approaching end to the conflict, potentially leading to the reopening of the vital Strait of Hormuz, which is used for a fifth of global oil and gas supplies. Although both sides hinted at nearing an agreement, their descriptions of the deal remained somewhat divergent.
The Fars News Agency reported that the agreement - which Tehran has yet to decide to approve - would require Iran to open the strait without restrictions, but the Islamic Republic will reopen the waterway "according to its prearranged arrangements." Iran announced after the conflict that it would regulate traffic through the strait and impose fees on crossing.
U.S. President Donald Trump has once again called on Iran to immediately reopen the strait. The closure of the waterway led to a sharp increase in energy prices worldwide. Recent sessions have seen fluctuations of up to six dollars for each index due to mixed signals about the possibility of reopening the strait.
Brent crude fell by about 11 percent this week, its biggest weekly drop in seven weeks. West Texas Intermediate crude fell by more than nine percent, recording its biggest weekly loss in six weeks, and both indices reached their lowest price since mid-April.
Sources told Reuters yesterday, Thursday, that the United States and Iran had reached an agreement to extend the ceasefire and lift restrictions on navigation through the Strait of Hormuz.
The volume of traffic through the strait still represents a tiny part of its level before the war. Analysts at ING stated that reopening the strait would instantly boost the oil market, but recovery remains uncertain.
Japan, which relies heavily on Middle Eastern oil imports, reported a 66 percent decrease in crude oil imports last month compared to April 2025.
Commerzbank raised its Brent crude price forecast to $90 a barrel by the end of September and $85 by the end of the year, based on the assumption that the Strait of Hormuz will remain closed to normal navigation for another two months.
The U.S. Energy Information Administration said yesterday, Thursday, that crude oil, gasoline, and distillate inventories in the U.S. declined last week with an increase in demand from refineries and consumers and a decline in exports of 1.16 million barrels per day to 4.4 million barrels per day.
