New Delhi, May 29 (IANS) Global crude oil prices fell 1 per cent in early trade on Friday as reports claim that the United States and Iran had agreed to a 60‑day memorandum of understanding to extend the ceasefire.

At 11:15 am, the international oil benchmark Brent crude traded at $92.66 a barrel, down 1.12 per cent, while US West Texas Intermediate declined 1.18 per cent to $87.86.

Reports claim that the 60‑day MoU would state shipping through the Strait of Hormuz would be unrestricted, according to US officials.

In addition, it would require Iran to remove mines within 30 days and end toll collection from the Strait.

US naval blockade would be lifted in proportion to the restoration of commercial shipping, the officials said, as per the report, adding that the deal had not yet received final approval from US President Donald Trump. Iran has also not confirmed its acceptance of the MoU.

Oil markets saw a volatile session on Thursday after prices jumped due to US strikes on a military site in Bandar Abbas.

However, markets remain keen on developments around the Strait of Hormuz, a key chokepoint for roughly a fifth of global oil and liquefied natural gas trade.

Under the direction of the government, the public sector oil companies are currently absorbing losses on the sale of petrol, diesel, and LPG to the tune of Rs 550 crore per day as they have refrained from passing on the full increase in global prices to protect domestic consumers, the Ministry of Petroleum and Natural Gas said earlier this week.

The ministry said supplies of crude, petrol and diesel remained adequate but flagged localised shortages due to panic buying.

The government has already cut petrol and diesel excise by Rs 10 per litre on March 27, 2026, and Indian retail prices have risen by only 8 to 9 per cent since the crisis began, against 20 to 67 per cent in neighbouring economies.

—IANS

aar/ag