(RTTNews) – Oil prices fell sharply on Friday to hit a one-month low and were on track for a sharp monthly loss as signs of easing U.S.-Iran tensions raised hopes of smoother oil flows through the Strait of Hormuz.
Brent crude futures fell below $92 a barrel and were down nearly 19 percent so far in May, marking their biggest monthly decline since 2020. WTI crude futures traded below $88 a barrel and were down more than 9 percent so far this week.
Media reports suggested that the U.S. and Iran have reached a temporary agreement to extend their ceasefire by 60 days, resume unrestricted shipments through the Strait of Hormuz and begin negotiations over Tehran’s nuclear program.
According to the tentative agreement, pending final approval from U.S. President Donald Trump, Iran would not be able to impose tolls on ships transiting the Strait of Hormuz, while the U.S. would gradually lift its sea blockade on Iranian ports.
Commenting on the final status of an interim deal, U.S. Treasury Secretary Scott Bessent said, “the teams have been going back and forth” and President Trump had set out three “red lines” for negotiations.
The three conditions are that Iran must hand over its highly enriched uranium, abandon its nuclear weapons development, and guarantee free passage through the Strait of Hormuz.
Bessent stressed that there can be no deal without these conditions and Trump will not sign a deal that is disadvantageous to the United States.
Vice President JD Vance cautioned that it remains uncertain whether or when an agreement with Iran could be finalized.
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