Crude Oil Hits 7-week Low

Crude oil dropped toward $86 per barrel on Friday, hitting its lowest level in nearly two months after President Donald Trump said a peace agreement with Iran could be reached as early as this weekend. The remarks came after he delayed planned military strikes and warned that the US could target Iran's oil infrastructure. Iran's semi-official Fars news agency reported that Tehran was likely to accept the deal, although no final text has been approved by either side. Trump said the agreement would reopen shipping through the Strait of Hormuz and include Iranian commitments to forgo developing nuclear weapons. Still, traders remained cautious, as even a breakthrough would face significant obstacles before oil flows fully normalize, including clearing mines from Hormuz, restarting idled production fields, and repairing energy facilities damaged by drone and missile attacks.

Crude oil fell more than 4% toward $86 per barrel on Thursday, the lowest since April, after President Trump suspended planned attacks against Iran scheduled for this evening, while also suggesting that Washington and Tehran were close to reaching an agreement to end the war. He later told reporters that a deal, including the reopening of the Strait of Hormuz, could be signed as early as this weekend, likely in Europe. Meanwhile, Iran's semi-official Fars news agency reported that Tehran was likely to approve the agreement, though it has yet to give a formal response. So far, oil facilities have largely been spared, which has helped prevent the kind of supply shock many traders had feared and kept prices well below earlier conflict peaks. On the demand side, Chinese imports from Saudi Arabia are expected to fall in July, while tanker traffic through the Strait of Hormuz has increased.

Crude Oil decreased to 85.94 USD/Bbl, the lowest since April 2026. Over the past 4 weeks, Crude Oil WTI lost 15.74%, and in the last 12 months, it increased 26.54%.