Shafaqna English– Following reports that the U.S. and Iran had agreed to extend a ceasefire — though not yet finalized — oil futures declined by more than 1% on Friday(29 May 2026), putting them on course for their steepest weekly drop since early April.
According to sources speaking to Reuters, the United States and Iran came to an understanding on Thursday to prolong a truce and remove limits on vessels traveling via the Strait of Hormuz; however, U.S. President Donald Trump still needs to give his approval, and Iranian state media have stated that the agreement is not yet complete.
In recent trading sessions, prices have experienced significant fluctuations, with both benchmarks moving up or down by as much as $6.
This volatility has been driven by contradictory signals regarding a potential conclusion to the three-month war waged by the U.S. and Israel against Iran, as well as the possible reopening of the Strait of Hormuz — a vital passageway through which approximately 20% of the world’s oil and liquefied natural gas supplies transit.
Source: Reuters