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Crude Oil Prices Drop as Trump Cancels New Strikes on Iran

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Crude oil prices dropped on Friday after U.S. President Donald Trump called off planned strikes on Iran amid progress in peace talks.

Brent crude at last look lost 4.4% to US$86.42/barrel and West Texas Intermediate crude fell 4.5% to $83.79/barrel. Prices hit their lowest levels in nearly two months after Trump said a deal that would reopen the Strait of Hormuz could be signed as soon as this weekend, Reuters said in a Friday report.

"Headlines are driving the market once again, as confidence grows that an eventual deal will be struck and the Strait reopens," Reuters quoted PVM Oil Associates analyst Tamas Varga as saying.

However, global and regional oil stocks remain low, and a deal may not be enough to boost stocks as it would take time to ensure uninterrupted oil flows, the analyst added, according to Reuters.

The Organization of the Petroleum Exporting Countries on Thursday reduced its 2026 global oil demand growth forecast to 970,000 barrels per day, down from a previous forecast of 1.17 million barrels per day. This is the producer group's second straight downward revision, the report said.

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