Meanwhile, Flynn rejects pessimistic outlooks about oil recovery: File Image/Pixabay

Following the U.S. and Iran eschewing a Friday signing ceremony in Switzerland and signing their 60-day interim pact towards a peace agreement on Wednesday, Brent traded just a few dollars above its prewar level.

Additionally, the AAA reported that the average cost of gasoline slipped below $4 per gallon in the U.S. for the first time in over two months; however, criticism over U.S. president Donald Trump’s pact with Iran mounted, as did skepticism of its feasibility.

As of 1615 GMT, Brent was down $1.85 at $77.69 per barrel, while West Texas Intermediate fell $1.89 to $74.90 per barrel.

As per the pact, U.S. military forces lifted the blockade on all maritime traffic entering and exiting Iranian ports and coastal areas near the Strait of Hormuz; however, the ships will remain in the general area to ensure all aspects of the agreement are adhered to.

Meanwhile, Trump fought back against critics who blamed him for everything from negotiating with rather than destroying the Iranian regime to creating a pact that gave too much to Iran, including $300 billion in payments: “There is no 300 Billion Dollar payment to Iran by the U.S.,” he wrote on Truth Social. “That’s fake news!”

For his part, U.S. vice president J.D. Vance elaborated that Iran would only receive benefits “if they fully comply and change their behaviour” - which led to the argument that Iran wouldn't live up to the pact and therefore fighting would resume.

David Fyfe, chief economist at Argus Media, told media that oil price volatility would drag on during the 60-day  negotiation window due to the uncertain pace of supply recovery in the Middle East and continued rapid crude drawdowns.

“An awful lot of questions about just how quickly supply can be returned to the market” remain, he said, adding, “It wouldn’t take much for prices to spike again.”

Phil Flynn, senior market analyst at Price Futures Group Inc., proved to be a voice of reason on Thursday, stating, "The potential reopening of the Strait of ⁠Hormuz removes the big risk premium that had been baked into crude from [the] disrupted 20 percent of global oil flows.

"While some say full normalization may take weeks - insurance, repairs, sanctions relief - but the direction is clear, and as we have found out that the more pessimistic timeline [has] been proven to be too pessimistic."