Oil falls to $92 amid uncertainty over Iran ceasefire finalization

May 29, 2026 (MLN): Oil prices dropped on Friday, putting crude on course for its sharpest weekly loss, after reports emerged that Washington and Tehran had tentatively agreed to extend a ceasefire though the deal had not yet been formalized.

Currently, Brent crude futures are down by $5.3, or 5.47%, to $91.63 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures are down by 4.08%, to $87.6 per barrel by [9:30 am] PST.

The two sides had reached an understanding on Thursday to both extend the ceasefire and lift restrictions on tanker movements through the strait. However, U.S. President Donald Trump had yet to sign off on the arrangement, and Iranian state media cautioned that no final agreement had been reached, according to Reuters.

Prices have swung sharply in recent sessions as markets parsed mixed signals over whether the conflict between the United States and Iran was nearing an end, and whether the Strait of Hormuz a critical artery for global energy shipments  could soon reopen to normal traffic. Shipping activity through the waterway remains a small fraction of pre-war levels.

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