- U.S. and Iran agreed to a 60-day ceasefire extension, pending Trump’s approval.
- The deal would reopen the Strait of Hormuz and lift some U.S. sanctions on Iran.
- Oil prices have fallen more than 10% since Trump paused planned strikes on May 18.
Oil prices dipped on Thursday after U.S. and Iranian negotiators reached a deal to extend the ceasefire between the two countries, Axios first reported.
Two U.S. officials and a regional source involved in mediation told Axios that negotiators agreed to a 60-day memorandum of understanding to extend the ceasefire and begin talks on Iran’s nuclear program. President Donald Trump has not yet approved the deal. Iran has also not confirmed its acceptance.
Trump was briefed on the final terms but did not immediately sign off.
“The president relayed to the mediators that he wants a couple of days to think about it,” a U.S. official told Axios.
Under the reported terms, the agreement would require unrestricted shipping through the Strait of Hormuz, with Iran removing all mines from the waterway within 30 days. The U.S. naval blockade would be lifted gradually as commercial shipping resumes. The U.S. would also issue sanctions waivers allowing Iran to sell oil freely.
Brent crude futures fell 58 cents to close at $93.71 per barrel. Brent crude, extracted from the North Sea, serves as the international benchmark for oil prices. U.S. West Texas Intermediate futures added 22 cents to settle at $88.90 per barrel. Prices had rallied earlier after the U.S. and Iran exchanged military strikes before news of the potential deal emerged.
Oil prices have dropped more than 10% since May 18, when Trump said he called off an imminent wave of strikes against Iran to allow more time for negotiations.
Rising gas prices, linked directly to the Hormuz disruption, pushed shoppers toward EVs and hybrids. Cars.com reported roughly a 25% increase in EV searches from late February to late March. A ceasefire and lower fuel costs could ease that urgency and shift demand back toward trucks and SUVs. With new car prices up about 10% year over year and gas at $4-plus a gallon, consumers are stretched. If the ceasefire holds and gas prices continue to fall, that would ease affordability concerns for potential car buyers.
