Muscat: Oil futures fell by more than one percent amid growing optimism that diplomatic efforts could help prevent further escalation in the region. Market sentiment improved following reports that Washington and Tehran may be moving toward an agreement to extend the ceasefire and reduce tensions.

Brent crude futures for July delivery dropped 1.1 percent, or $1.04, to settle at $92.67 per barrel. Meanwhile, U.S. crude futures fell 1.4 percent, or $1.26, to $87.64 per barrel.

The declines capped a difficult week for oil markets. Brent crude recorded a weekly loss of 10.5 percent, marking its biggest drop since the week ending April 6. U.S. benchmark West Texas Intermediate (WTI) crude also posted a sharp weekly decline of 9.2 percent, its largest since the week ending April 13.