Brent declines ahead of Trump's Hormuz deal signing
Oil prices dropped by more than 1% during Friday’s trading session, heading toward their biggest weekly loss since April. This comes after reports of a potential agreement between the United States and Iran to extend a ceasefire and lift restrictions on navigation through the Strait of Hormuz, although the deal has not yet been officially confirmed. Brent crude fell by $1.04 to reach $92.67 per barrel, while West Texas Intermediate declined by $1.26 to $87.64, marking a significant reduction in weekly losses. Reports suggest that the exchange of understandings reflects a possibility of easing tensions, which led to a decrease in risk premiums and expectations of a gradual return to navigation through the Strait of Hormuz. However, restoring production and reopening the strait still require time due to infrastructure destruction and imposed restrictions.
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