RoydadNaft –  Brent crude futures fell by 34 cents, or 0.3%, to $94.05 per barrel. U.S. West Texas Intermediate (WTI) crude futures remained largely unchanged at $88.89 per barrel.

Oil futures stabilized on Friday, but the market remained on track for its sharpest weekly decline since early April following reports that the United States and Iran had reached a potential agreement to extend a ceasefire.

According to the report, Brent crude futures for July delivery declined by 34 cents, or 0.3%, to $94.05 per barrel as of 08:10 GMT. U.S. crude futures also held steady at $88.89 per barrel. Both benchmarks had previously fallen by more than 1% earlier in the trading session.

Brent crude has lost nearly 9% this week, marking its steepest weekly decline since the week ending April 6. Meanwhile, WTI crude has dropped close to 8%, recording its largest weekly loss since the week ending April 13.

Giovanni Staunovo, an analyst at UBS, said: “While oil flows through the Strait of Hormuz remain restricted and oil inventories continue to decline, market attention is still focused on the possibility of a deal between the U.S. and Iran.”

Sources told Reuters that Washington and Tehran reached an agreement on Thursday to extend the ceasefire and ease shipping restrictions through the Strait of Hormuz. However, the agreement has not yet been approved by U.S. President Donald Trump, and Iranian state media reported that negotiations have not been finalized.

Oil prices have experienced significant volatility in recent sessions, fluctuating by as much as $6 for both major benchmarks amid conflicting signals regarding a possible end to the Iran war and the reopening of the Strait of Hormuz. Before the conflict, the strategic waterway handled nearly one-fifth of the world’s oil and liquefied natural gas supplies.

Despite this, tanker traffic through the maritime chokepoint remains well below pre-conflict levels. Analysts at ING believe reopening the waterway could provide immediate relief to the oil market, although a full recovery remains uncertain.

Japan, which depends heavily on Middle Eastern oil, recorded a 66% decline in crude oil imports last month compared to April of last year.

Meanwhile, the U.S. Energy Information Administration reported that U.S. crude oil, gasoline, and distillate inventories declined last week due to stronger demand from refiners and consumers, alongside a drop in U.S. oil exports by 1.16 million barrels per day to 4.4 million barrels per day.