The news drove Brent crude down to $93.36 a barrel from an earlier high of $98, before stabilizing near the $94 mark.
Media outlet Axios reported that officials finalized an agreement to extend their current truce and initiate talks regarding Tehran’s nuclear program.
The prospective deal now awaits final approval from President Donald Trump, who requested a few days to evaluate the terms.
Energy markets reacted volatilely this week as shipping disruptions in the Strait of Hormuz threatened a fifth of global oil supplies.
Recent security incidents near the strategic waterway had previously pushed Brent crude prices toward $120, well above the normal $70 average.
Washington previously deployed defensive security measures against Iranian drones and vessels to protect vital maritime trade routes from potential interference.
Tehran labeled the recent USA actions a violation of their ongoing dialogue, though both sides continue seeking a long-term diplomatic resolution.
Meanwhile, neighboring Kuwait reported that its own security forces successfully intercepted unidentified drone threats within its airspace on Thursday afternoon.
