Crude oil prices edged lower on Friday as hopes of a potential agreement between the United States and Iran to extend their ceasefire weighed on market sentiment.
However, comments from US Vice President JD Vance indicating that negotiations were progressing but not yet finalised helped limit further downside in prices.
Brent crude futures for July delivery, which expire on Friday’s settlement, slipped 35 cents, or 0.37%, to trade at US$93.36 a barrel. Meanwhile, US crude oil futures declined 63 cents, or 0.71%, to US$88.27 per barrel.
The more actively traded August Brent crude futures also fell 46 cents, or 0.50%, to US$92.24 per barrel.
Despite the relatively modest losses during the latest session, crude oil prices were set for a sharp weekly decline of more than 8%.
Brent crude touched a weekly low of US$87.11 after surging to a high of US$109.47 last week, highlighting the significant volatility in energy markets driven by geopolitical developments.
Oil prices have fluctuated sharply in recent trading sessions, with both Brent and US crude benchmarks witnessing swings of as much as US$6 amid conflicting reports regarding a possible end to the three-month conflict involving Iran.
Market participants continue to closely monitor developments surrounding the Strait of Hormuz, a critical maritime route responsible for transporting nearly one-fifth of the world’s oil and liquefied natural gas supplies.
Although shipping activity through the Strait remains significantly below pre-war levels, reports suggesting the easing of restrictions on maritime traffic provided some relief to energy markets.
According to reports, the United States and Iran reached a preliminary agreement on Thursday to extend the ceasefire and remove shipping restrictions through the Strait of Hormuz. However, the agreement is yet to receive formal approval from US President Donald Trump, while Iranian state media indicated that discussions were still ongoing.
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US Vice President JD Vance stated that negotiations between Washington and Tehran were progressing positively, although key issues remained unresolved.
Speaking to reporters, Vance said the two nations were “close” to reaching an agreement but added that negotiations had not yet been completed.
He noted that major sticking points in the discussions included Iran’s enriched uranium stockpile and concerns surrounding uranium enrichment activities.
Vance also remarked that the United States remained in a position to significantly weaken Tehran’s nuclear programme if required.
“I can’t guarantee that we’re going to get there, but right now I feel pretty good about it,” he said.
Crude oil prices remain highly sensitive to geopolitical developments and diplomatic negotiations involving the United States and Iran. While hopes of an extended ceasefire agreement have eased immediate supply concerns, uncertainty surrounding the finalisation of the deal and the future of shipping activity through the Strait of Hormuz is likely to keep energy markets volatile in the near term.
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Published on: May 29, 2026, 8:59 AM IST
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