Brent crude oil prices fell on Friday, extending a sharp monthly decline as markets reacted to growing optimism that the United States and Iran may be moving toward a tentative ceasefire framework that could ease tensions in the Strait of Hormuz.
Brent crude futures slipped to around $92–$93 per barrel, down about 1% on the day, and are now on track for monthly losses of roughly 10% to 17%, as traders continue to unwind geopolitical risk premiums that had previously supported prices.
Sentiment has been driven by reports suggesting Washington and Tehran are exploring a possible agreement that could include a 60-day extension of a ceasefire, steps toward improving maritime security, and measures aimed at stabilising shipping through the Strait of Hormuz, a critical chokepoint for global oil flows. Any reduction in the risk of disruption through the waterway typically weighs on crude prices, given its importance to global energy supply.
However, the outlook remains uncertain as no final agreement has been reached. Key sticking points remain, including unresolved issues over Iran’s nuclear programme, sanctions relief, and broader regional security concerns. The proposed terms also still require approval from US President Donald Trump, while Vice President JD Vance has cautioned that negotiations remain fragile and could still collapse.
Oil markets have been highly sensitive to geopolitical headlines in recent weeks, with prices swinging on shifting expectations around diplomacy and conflict risk in the Middle East.
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Despite the recent decline, Brent crude remains significantly higher year-on-year, reflecting earlier spikes driven by heightened regional tensions.
