TLDRBrent crude slipped toward $98 per barrel, WTI approached $93, with both benchmarks losing more than 3% over the weekPresident Trump announced a 10-day Israel-Lebanon truce and stated Iran accepted critical termsTehran has not publicly verified any agreements, including reopening the Strait of HormuzIEA cautioned that restoring oil and gas output could require as long as two yearsIEA and OPEC both project softer global oil demand in the months aheadOil prices tumbled on Friday following diplomatic overtures from Washington suggesting a potential resolution to the nearly 50-day US-Iran standoff.Brent crude declined 1.1% to approximately $98.32 per barrel, while West Texas Intermediate fell 1.3% to $89.95. Weekly losses for both benchmarks exceeded 3%.Brent Crude Oil Last Day Financ (BZ=F)The confrontation erupted in February following coordinated US-Israeli strikes against Iran. In response, Tehran severely restricted traffic through the Strait of Hormuz, choking off approximately 20% of worldwide oil shipments. Washington subsequently imposed its own naval blockade.President Donald Trump adopted an upbeat stance on Thursday, asserting that Iran had accepted previously rejected conditions, notably agreeing to reopen the Strait of Hormuz. Iranian officials have not publicly acknowledged these claims.Trump simultaneously unveiled a 10-day ceasefire arrangement between Israel and Lebanon. He extended White House invitations to Israeli Prime Minister Benjamin Netanyahu and Lebanese President Joseph Aoun for further discussions.BREAKING: President Trump says a 10-day ceasefire between Lebanon and Israel will begin at 5 PM ET today. pic.twitter.com/coWBrqaL8k— The Kobeissi Letter (@KobeissiLetter) April 16, 2026Incorporating Lebanon into a ceasefire framework represented a critical Iranian prerequisite for wider negotiations. The agreement remained intact through Friday morning.“The prevailing narrative has shifted from escalation to stabilization,” remarked Priyanka Sachdeva, senior market analyst at Phillip Nova. “Fear propelled the surge, diplomacy is fueling the pullback.”Peace Negotiations May Require MonthsSeveral Gulf Arab and European officials indicated that finalizing a comprehensive US-Iran agreement might span approximately six months. They encouraged both nations to prolong the existing ceasefire throughout this negotiation window.OCBC analysts observed that the US naval blockade reached its fourth day, maintaining Hormuz traffic at virtually stagnant levels. Oil transit through the waterway remains minimal compared to pre-conflict volumes.Trump expressed confidence he wouldn’t need to prolong the ceasefire to secure an agreement, forecasting a settlement “fairly soon.” He mentioned potentially visiting Pakistan, which facilitated the initial negotiating round, should a deal materialize.Following weeks of extreme market turbulence, price fluctuations have moderated. Brent oscillated within roughly a $10 per barrel range this week, sharply contrasting with the historic $38 swing recorded in mid-March.Production Disruptions Could Persist for YearsIEA Executive Director Fatih Birol cautioned that restoring a substantial portion of interrupted oil and gas production might extend up to two years. Any recovery would unfold incrementally, he emphasized.Both the IEA and OPEC released downwardly revised global oil demand projections for upcoming months, compounding bearish pressure on crude prices.“Despite some encouraging geopolitical developments, they haven’t resulted in concrete improvements in actual flows,” observed Rebecca Babin, senior energy trader at CIBC Private Wealth Group.Authority over the Strait of Hormuz continues unresolved. Iran has indicated intentions to impose transit fees on vessels even following the conflict’s conclusion.The present US-Iran ceasefire is scheduled to lapse on April 21.The post Crude Oil Tumbles Over 3% on US-Iran Diplomatic Breakthrough Hopes appeared first on Blockonomi.