(RTTNews) – Oil prices slumped over 4 percent on Friday after U.S. President Donald Trump called off new military strikes on Iran and said a peace deal could be signed in a few days, helping ease fears of escalation.
According to Iran’s Mehr News Agency, a memorandum on resolving the conflict consists of 14 points and includes a set of coordinated provisions.
Brent crude futures for August delivery plunged 4.2 percent to $86.56 a barrel, while WTI crude futures for July delivery were down 4.3 percent at $83.95.
U.S. President Trump claimed an agreement to end the war with Iran had been reached and would be signed shortly, possibly in Europe this weekend with Vice President JD Vance attending on his behalf.
Trump also said the Strait of Hormuz would officially reopen once the Iran deal was signed and that Iran will never have a nuclear weapon.
Iran, however, maintained a tough stance and pushed back against optimistic remarks from Trump.
Iranian officials insisted that no final decision has been made and that key differences remain unresolved.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei dismissed reports regarding the timing and location of any potential agreement as premature, clarifying that Tehran will not compromise on what it describes as its “red lines.” It was said significant obstacles continue to stand in the way of a breakthrough.
Elsewhere, Israeli Prime Minister Benjamin Netanyahu said Israel is not a party to the memorandum of understanding, while welcoming assurances from Trump that the final agreement with Iran would include the removal of enriched material, the dismantling of enrichment infrastructure, limits on missile production, and the cessation of Iran’s support for its terrorist proxies in the region.
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