05:50 AM EDT, 05/29/2026 (MT Newswires) -- Crude oil prices fell on Friday following reports that an agreement has been reached between the U.S. and Iran to potentially extend their ceasefire.

Brent crude at last look lost 1.3% to US$92.46/barrel and West Texas Intermediate crude declined 1.7% to $87.39/barrel. Both benchmarks are on track for their steepest weekly decline since early April.

The U.S. and Iran reportedly reached an agreement on Thursday to extend the ceasefire and lift restrictions on shipping through the Strait of Hormuz, Reuters said in a Friday report, citing unnamed sources. The deal has not been approved by U.S. President Donald Trump and Iranian state media said it has not been finalized, according to the report.

"While oil flows through the Strait of Hormuz remain restricted and oil inventories keep falling, the market focus remains on the possibility of a deal between the U.S. and Iran," Reuters quoted UBS analyst Giovanni Staunovo as saying.

A reopening of the strait would offer some immediate relief to the oil market, but recovery remains uncertain, analysts at ING said, as reported by Reuters.