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EMEA Oil Update: Crude Falls After Trump Lifts Hormuz Blockade, Outlines Iran Deal Terms

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EMEA crude futures dropped in after-hours trading on Friday after President Trump lifted the retaliatory US naval blockade of Iranian ports, raising expectations of increased global supply and easing concerns about supply disruptions.

Brent crude futures fell by 1.91% to $91.92 per barrel, while Murban oil futures retreated 1.69% to $92.50/bbl.

"The oil market continues to edge lower amid growing optimism that the US and Iran are moving toward a deal," ING strategists said, adding that the reopening of the Strait would offer some immediate relief to the global energy markets.

On Friday, Trump said he would meet in the White House Situation Room to make a final determination on an agreement with Iran.

"I will be meeting now, in the Situation Room, to make a final determination," Trump said in a social media post on Truth Social.

The US President said that Washington would lift the retaliatory US naval blockade in the Gulf of Oman, noting that vessels previously affected by the blockade could now return home. "Ships caught in the Strait due to our amazing and unprecedented Naval Blockade, which will now be lifted, may start the process of 'heading home!" he said.

The development comes a day after media reports suggesting that US and Iran negotiators had reached a tentative agreement for a 60-day ceasefire extension and the start of talks on Tehran's nuclear program.

Saxo Bank strategists said oil fell to a five-week low after the US and Iran tentatively agreed to extend their ceasefire by 60 days, with Brent heading for its biggest monthly decline since 2020, as expectations grew that the agreement could pave the way for a gradual reopening of the Strait of Hormuz.

"While significant hurdles remain, the market is reacting to the prospect of a supply surge once hundreds of tankers loaded with crude oil and refined fuels are released from the Persian Gulf," the analysts said.

Meanwhile, Iran's Speaker of Parliament Mohammad Bagher Ghalibaf said in a social media post that Tehran seizes concessions not through dialogue but with missiles, adding, "in negotiations, we merely make them understand".

"We have no trust in guarantees or words, only actions are the measure," Ghalibaf said in a social media post X. "No action will be taken before the other side acts."

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