Key facts
- President Trump claims a peace deal with Iran is nearing finalization, with a potential signing ceremony this weekend.
- Iran's foreign ministry stated that reports of a finalized deal are speculative and that the US has made excessive demands.
- A memorandum of understanding between the US and Iran could be signed as soon as Sunday, focusing on nuclear and economic issues.
- Oil prices, including Brent crude and WTI, dropped over 3% following the news of potential de-escalation.
- Iran had previously announced the closure of the Strait of Hormuz, a key global oil shipping route.
US President Donald Trump stated on Friday that a peace deal with Iran is nearing finalization, with a signing ceremony potentially occurring this weekend in Geneva. Trump shared a post from Iranian Foreign Minister Abbas Araghchi, who indicated an agreement "has never been closer" but noted a final deal was still pending.
According to a western source, the memorandum of understanding (MoU) between the US and Iran to halt the war in the Gulf could be signed as soon as Sunday. Iran's Mehr news agency reported that final negotiations on the MoU would focus on nuclear and economic issues, excluding discussions about Iran's missile program. Iran's IRNA news agency added that nuclear talks would take place within a 60-day period after signing the MoU.
However, Iran's foreign ministry has previously described reports of a finalized deal as speculative, with a spokesperson stating that the US has made "excessive demands" and added new requests to negotiations. Trump, who turns 80 on Sunday, had previously threatened strikes on Iran and announced he had cancelled further strikes on Thursday.
In response to the developments, oil prices fell over 3% on Friday. Brent crude futures dropped 3.46% to $87.25 a barrel, and US West Texas Intermediate (WTI) crude fell 3.58% to $84.57, marking their lowest levels since April 17. On Thursday, Iran had announced the closure of the Strait of Hormuz, a critical global oil shipping route, though the US military stated commercial ships continued to transit the waterway.