Key facts
- Global oil prices fell to a two-month low on Friday.
- President Donald Trump announced progress toward a peace deal with Iran.
- The potential deal could lead to the reopening of the Strait of Hormuz.
- Brent crude traded below $87 a barrel.
- Goldman Sachs lowered its 2027 Brent forecast to $80 a barrel.
- OPEC revised its 2026 world oil demand growth forecast downward.
Global oil prices plummeted on Friday to lows not seen since April 17, driven by President Donald Trump's announcement of progress toward a peace deal with Iran. Trump called off planned military strikes, citing positive talks that could lead to the reopening of the Strait of Hormuz, a vital chokepoint for global oil and LNG shipments.
Brent crude fell to settle around $87.04 a barrel, a 3.7% decline on the day, while WTI crude dropped to $84.60. Iran indicated that significant parts of an agreement had been finalized, although a final decision was pending. Analysts suggest that market confidence in an eventual deal and the reopening of Hormuz is currently driving prices lower.
Goldman Sachs has lowered its 2027 average Brent forecast to $80 a barrel, citing higher expected supplies and lower demand forecasts. OPEC, meanwhile, has lowered its 2026 world oil demand growth forecast for the second consecutive month.