Brent Crude Tumbles Below $90

Brent crude futures plunged 10% to below $90 per barrel on Friday, hitting near five-week lows after Iran’s Foreign Minister Abbas Araghchi announced that the Strait of Hormuz is now fully open to commercial traffic during the ceasefire period. The move boosted optimism that one of the most severe global energy supply disruptions in recent history may be easing. The statement followed earlier remarks from President Donald Trump, who said Iranian concessions could pave the way for a broader peace deal. Prices extended losses after reports that the US may release $20 billion in frozen Iranian funds in exchange for enriched uranium stockpiles, with further talks expected this weekend. The market is increasingly pricing in an end to the conflict’s impact on supply, after nearly 50 days of disruption that had choked off a significant share of global oil flows.

Brent crude futures slipped below $97 per barrel on Friday, retreating after a 4.7% gain in the prior session as President Donald Trump struck an optimistic tone about the chances of a lasting US-Iran ceasefire. He said Tehran had agreed to key terms, including reopening the Strait of Hormuz, though Iran has not confirmed this. Officials suggest a full deal could take up to six months, with calls to extend the current truce. The conflict, nearing 50 days, has triggered a major supply shock, with Iranian restrictions and a US naval blockade keeping flows through Hormuz near a standstill. Trump said a deal could come soon, but left room to extend talks if needed. Meanwhile, a 10-day ceasefire between Israel and Lebanon may help ease regional tensions. Disruptions have reshaped trade flows, with US crude exports surging to near-record levels as Europe and Asia seek alternatives, pushing the US close to net-exporter status for the first time since World War Two.

Brent crude futures slipped toward $98 per barrel on Friday, trimming gains from the previous session after US President Donald Trump voiced optimism about a possible agreement to end the conflict with Iran. He said Tehran had accepted terms that include abandoning ambitions for a nuclear weapon, providing “free oil,” and reopening the Strait of Hormuz, though Iranian authorities have yet to confirm the claims. Trump also announced a 10-day ceasefire between Israel and Lebanon, which was confirmed by Israeli Prime Minister Benjamin Netanyahu. Meanwhile, the Strait of Hormuz remains effectively closed due to a dual blockade by the US and Iran, keeping markets on edge over further disruptions to global energy flows. Meanwhile, IMF Executive Director Fatih Birol warned that restoring a meaningful portion of disrupted oil and gas output could take up to two years.