Oil Prices Retreat as Markets await Trump Approval on Iran Ceasefire Extension

Oil prices eased on Thursday, retracing earlier gains, as markets awaited U.S. President Donald Trump’s approval of a tentative agreement to extend the ceasefire with Iran.

Sources familiar with the negotiations told CNBC that U.S. and Iranian officials had reached a 60-day memorandum of understanding to prolong the ceasefire and initiate talks on Iran’s nuclear program. The agreement still requires final authorization from President Trump. Axios was the first outlet to report the development.

Brent crude futures fell $0.93 to $93.36 per barrel, while West Texas Intermediate (WTI) futures dipped $0.07 to $88.61 per barrel. Earlier in the day, prices had spiked following a series of military exchanges between the U.S. and Iran.

Latest Oil Prices:

WTI Crude • 88.43 -0.47 -0.53%

Brent Crude • 93.71 -0.58 -0.62%

Murban Crude • 94.09 +4.16 +4.63%

WTI Midland • 90.02 -0.07 -0.08%

Opec Basket • 104.8 -2.55 -2.37%

Indian Basket • 102.1 +0.00 +0.00%

Natural Gas • 3.298 +0.013 +0.40%

Gasoline • 3.185 +0.051 +1.64%

Heating Oil • 3.619 +0.021 +0.59%

The Iranian Revolutionary Guard reportedly targeted a U.S. airbase at approximately 4:50 a.m. local time, although the location was not disclosed. In response, the U.S. Central Command stated that Iran had fired ballistic missiles toward Kuwait, which were successfully intercepted.

The escalation followed U.S. airstrikes on an Iranian military site deemed a threat to American forces and commercial shipping through the Strait of Hormuz, with several Iranian drones also reported downed.

Since May 18, oil prices have fallen over 10%, after President Trump postponed imminent military action to allow additional time for negotiations. U.S. Secretary of State Marco Rubio noted on Wednesday that talks had made some progress, emphasizing that the administration favors diplomacy and intends to give the Iran negotiations “every opportunity to succeed.”

The situation underscores continued fragility in U.S.-Iran relations, particularly regarding the strategic Strait of Hormuz, where tensions remain high despite the fragile ceasefire reached in April.