Oil prices fell over 3% today, Friday, hitting nearly two-month lows, as U.S. and Iranian officials announced nearing an agreement to halt the conflict in the Middle East. By 23:00 Moscow time, Brent crude futures dropped 3.77% to $86.97 per
barrel, and U.S. West Texas Intermediate (WTI) crude price decreased 3.75% to $84.42. Both contracts recorded their lowest levels since April 17. Phil Flynn, senior analyst at Price Futures Group, stated markets now see a US-Iran agreement as closer. He
expects a memorandum of understanding to halt Gulf hostilities could be signed within days, possibly Sunday, with Geneva likely chosen as the venue. Reuters quoted a Western source indicating the potential agreement might help reopen the Strait of Hormuz to
navigation. However, the Iranian Fars news agency denied these speculations, citing a source close to negotiations. U.S. President Donald Trump had canceled announced strikes, citing progress in Iran talks and indicating a Strait agreement might be reached soon. Iran's Mehr
news agency clarified final negotiations would cover nuclear and economic issues, excluding the missile program. Irna news agency added nuclear talks would occur within 60 days of the MOU signing. Tamas Varga, an analyst at PVM Oil Associates, noted negotiation
news is again driving markets, boosting confidence in an agreement and the Strait's opening. Yet, he warned low oil inventories keep risks high, as supply resumption needs time to reach markets. Iran had previously announced the closure of the Strait
of Hormuz—through which about a fifth of global oil and gas shipments pass—causing oil price hikes. State media also reported Iranian forces blocked an oil tanker's passage due to lack of prior coordination and a transit license.
