Crude oil prices fell sharply amid optimism for a US-Iran ceasefire extension to reopen the Strait of Hormuz.

Brent crude dropped below $92 a barrel. West Texas Intermediate (WTI) fell to near $88 a barrel. Both benchmarks declined more than 10% over the week.

Traders are pricing out the geopolitical risk premium associated with the strait's closure. A finalized deal would restore significant oil flows to the global market and ease supply concerns.

Analysts caution that prices could rebound if negotiations falter.