Oil prices fall sharply on hopes of US-Iran ceasefire extension

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London : Oil prices were headed for their biggest weekly decline since April after reports that the United States and Iran had reached a tentative agreement to extend a ceasefire and ease shipping restrictions through the Strait of Hormuz.

Brent crude and U.S. oil futures steadied on Friday after earlier falling more than 1%, with both benchmarks down sharply for the week amid hopes of reduced tensions in the region.

Markets have been volatile in recent days as traders reacted to conflicting signals over the Iran conflict and the future of oil shipments through the Strait of Hormuz, a key global energy route.

The proposed agreement has not yet been finalised, with U.S. President Donald Trump yet to approve it, while Iranian media said talks were still ongoing.