Global oil prices have retreated sharply amid hopes that a lasting Middle East ceasefire can unlock the Strait of Hormuz.

If agreed upon, the temporary truce would essentially restore the status quo from before the war began.

Global oil prices finished on a mixed note while U.S. crude prices edged higher Thursday, reacting to news of progress toward a deal that would extend the U.S.-Iran cease-fire.

Oil futures settled higher as traders took a cautious approach to reports that the U.S. and Iran have drawn up a draft agreement to extend the cease-fire and negotiate peace, which would include reopening the Strait of Hormuz.

Oil futures fell more than 2% on Friday, closing out their steepest ​weekly decline since early April as traders awaited word that the U.S., Israel and Iran had reached agreement on a ceasefire.

Shortly before noon, the president posted on Truth Social that he was “meeting now” in the Situation Room “to make a final determination” on a potential agreement.

The cease-fire between the two countries is looking increasingly fragile but the market is still hopeful that a deal may soon be reached. Oil prices were higher but remained well

Oil prices dipped Thursday amid reports that the U.S. and Iran had reached a tentative deal to extend their ceasefire and reopen the Strait of Hormuz. International benchmark Brent crude was trading at about $94 per barrel as of Thursday afternoon,