• WTI falls on reports of a tentative 60-day US-Iran ceasefire extension easing Strait of Hormuz shipping tensions.
• President Trump hasn't yet approved the terms, and Vice President Vance warned a final US-Iran agreement remains uncertain.
• Oil prices fell due to a 3.3-million-barrel drop in US crude stockpiles because the draw missed analyst expectations.

West Texas Intermediate (WTI) oil price extends its losses for the third successive day, trading around $87.20 per barrel during the Asian hours on Friday. Crude oil prices have declined following reports that the United States (US) and Iran have tentatively agreed to a 60-day extension of their ceasefire, a deal that could potentially permit unrestricted shipping through the vital Strait of Hormuz.

As part of the proposed arrangement, Iran would reportedly clear all mines from the waterway within 30 days. However, the situation remains fluid, as US President Donald Trump has not yet approved the terms, and Vice President JD Vance has cautioned that it is still uncertain whether or when a final agreement will be reached.

Driven by growing optimism surrounding the US-Iran potential negotiations, the US oil benchmark has dropped nearly 15% so far this month. Despite the downward trend in prices, significant obstacles to a long-term resolution persist, most notably Tehran’s nuclear ambitions, permanent control of the Hormuz passage, and the complex issue of sanctions relief.

Adding to the downward pressure on energy markets, EIA Crude Oil Stocks Change recently revealed that the US crude oil stockpiles fell by 3.3 million barrels last week. While this marks the sixth consecutive week of inventory declines, the reduction was smaller than the 4.1-million-barrel draw that analysts polled by Reuters had anticipated, further dampening bullish sentiment.