WTI Retreats Below $92.50 on US-Iran Ceasefire Optimism Despite Ongoing Strikes

• WTI price falls to near $92.45 in Friday’s early European session.
• The US believes it's close to an agreement with Iran to end the war.  
• Trump said the ceasefire remains in place despite the strikes. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $92.45 during the early European trading hours on Friday. The WTI price attracts some sellers on optimism over a possible deal to end the war with Iran. 

The US President Donald Trump administration has been waiting for Iran to respond to its proposal to reopen the Strait of Hormuz and end the war. Meanwhile, Iran’s leaders haven't indicated whether they’ll accept the terms of the deal, though they’ve previously shown little sign of yielding on their nuclear program and accepting a moratorium on enriching uranium. Hopes of a "one-page deal" to end the two-month conflict could boost hopes of improved supply flows, weighing on the WTI price. 

However, uncertainty in the Middle East remains high as the US and Iran exchanged fire late on Thursday. The Guardian reported that Iran accused the US of violating the ceasefire by targeting two ships at the Strait of Hormuz and attacking civilian areas, as Washington insisted it struck in retaliation. Trump said the ceasefire remains in place despite the strikes.

Crude oil stockpiles in the US declined by 2.314 million barrels during the week ending May 1, compared to a fall of 6.233 million barrels in the previous week, according to the Energy Information Administration's (EIA) weekly report. The market consensus was for a decrease of 2.8  million barrels.