Oil futures fell more than 1 per cent today and were on track for their steepest weekly decline since early April, following ​reports that the US and Iran had agreed to extend a ceasefire.

Brent crude futures for July fell 1.1 per cent or $1.04 to $92.67 a barrel.

US oil futures fell $1.26, or 1.4 per cent, to $87.64 a barrel.

Brent plunged 10.5 per cent ​this week – the steepest plunge since the week that ended on 6 April, while West Texas Intermediate fell 9.2 per cent – the biggest weekly loss since the ⁠week that ended on 13 April.

A US official has denied Iranian state media claims that a US aircraft was destroyed near Bushehr in southern Iran.

Iran’s state television reported that a US aircraft was downed in the area, without providing details on the type of aircraft.

The White House deputy chief of staff has claimed that Iran has made “many other concessions” besides agreeing to a complete reopening of the Strait of Hormuz.

Stephen Miller told Fox News that the concessions have been “significant, material, and dramatic”, adding that they “would have been impossible only a short time ago”.

“But again, there is no deal until there is a deal; nothing is final until it is final,” he said.

“President Trump has been clear that he reserves the option now or any time in the future to do whatever is necessary to defend and protect America’s national security,” he added.

The president’s casual menacing of a longstanding Gulf ally may yet be a turning point for US relations with several Middle East states, Israel included, says Mary Dejevsky.

Saudi ​Arabia is likely to cut its official selling prices (OSPs) for crude oil to Asia in ‌July for a second month, a Reuters survey showed, as spot premiums eased on sluggish demand despite supply disruptions stemming from tensions in the Middle East.

The July OSP for flagship Arab Light crude may slide to a premium of $7.50 to $12.50 a barrel ​above the average Dubai and Oman quotes, five industry sources said in the survey, $3 to $8 a ​barrel lower than the OSP for June.

The expected cut follows a price decline and tepid ⁠trading in the spot market in May.

Among the first issues to be negotiated during the 60-day ceasefire is what will happen to Iran’s highly enriched uranium, a US official said.

The Islamic Republic has 440.9kg of uranium that is enriched up to 60 per cent purity, a short, technical step from weapons-grade levels of 90 per cent, according to the International Atomic Energy Agency.

Vice president JD Vance said yesterday evening that negotiators were trying to strike general terms on the highly enriched uranium settled in the tentative agreement, with the specifics to be hammered out in the ensuing talks.

Vance said the continued back and forth involved “a couple of issues on the nuclear stuff, the highly enriched stockpile, and also the question of enrichment”.

The memorandum to extend a fragile US-Iran ceasefire makes clear that Iran will not be able to impose tolls on the Strait of Hormuz and that Iran will have to remove all mines from the vital waterway within 30 days, according to an official.

During the war, Iran has effectively closed the strait, which had been the conduit for about a fifth of the world’s traded oil and natural gas.Its closure has sent oil prices skyrocketing around the world.

US treasury secretary Scott Bessent told a news briefing on Thursday that the cost of oil could “come down very quickly” once a deal is finalised.

Iran has said it’s letting some commercial vessels pass – about two dozen daily in recent days, compared with more than 100 a day before the war – but the Islamic Republic also has charged tolls for at least some ships.

It set up a formal gatekeeper agency earlier this month, spurring a new round of US sanctions this week.

Under the tentative agreement, the US would gradually lift its naval blockade on Iranian ports and would also agree to relax sanctions, allowing Iran to sell more of its oil.

US secretary of state Marco Rubio will meet Pakistani foreign minister Muhammad Ishaq Dar today as negotiations between the US and Iran gained speed.

The visit comes as Islamabad is attempting to negotiate a peace pact to permanently end the US-Israeli war with Iran.

Dar will meet Rubio “to review bilateral relations and exchange views on regional and global developments of mutual interest”, Pakistan’s foreign ministry said in a statement.

The US and Iranian negotiators have reached a tentative agreement to extend the ceasefire by 60 days and launch negotiations on Iran’s nuclear program, according to a US official familiar with the matter.

The official, who spoke on condition of anonymity to the Associated Press, said that president Donald Trump still needs to sign off on the emerging memorandum of understanding.