Brent crude futures fell sharply on Friday, dropping $7.55, or approximately 7.8%, to settle at $89.23 per barrel.
West Texas Intermediate (WTI) benchmarks also retreated, declining by 6.73% in the session.
The steep sell-off in energy prices coincided with broader weakness in the US dollar, which opened lower and touched a six-year low as investors digested recent macroeconomic data.
The decline in oil comes as market participants recalibrate their interest rate outlook following softer-than-anticipated US inflation figures and a disappointing labor market report.
The US dollar index held steady in Friday trading but remains on track for a weekly decline, reflecting a significant shift in sentiment toward lower US yields.
This macro backdrop has intensified selling pressure across commodities, with oil prices particularly sensitive to the prospect of reduced global demand and cheaper borrowing costs.