Oil prices ease amid progress in US-Iran ceasefire talks

Global oil prices edged lower after mediators between the United States and Iran reportedly agreed on a new draft deal aimed at extending the current ceasefire for another 60 days and launching formal negotiations over Tehran’s nuclear programme.

According to Al Jazeera, the proposed agreement has yet to receive final approval from the top leadership of both countries, but signs of diplomatic progress eased concerns in the energy market.

On Friday, Brent crude futures fell by 35 cents, or 0.37 per cent, to $93.36 per barrel. US West Texas Intermediate (WTI) crude also declined by 63 cents, or 0.71 per cent, to $88.27 per barrel.

Meanwhile, August Brent crude futures dropped by 46 cents, or 0.50 per cent, trading at $92.24 per barrel.

The decline came a day after oil prices surged sharply following renewed US strikes on a military base near Bandar Abbas, one of Iran’s strategically important ports for global energy shipments.

On Thursday, Brent crude prices jumped 3.75 per cent to $97.83 per barrel, while US crude gained 4 per cent to reach $92.22 per barrel amid fears of escalating tensions in the Middle East.

Market analysts say the latest diplomatic developments have provided temporary relief to global energy markets.

However, they warn that volatility is likely to persist until a formal ceasefire agreement is finalised and regional tensions fully subside.