FX.co ★ Crude Oil Falls to 8-Week Low

Crude oil prices fell more than 4% to below $84 per barrel on Friday, extending their decline to an eight-week low amid rising optimism that the US and Iran could strike a peace agreement and resolve a conflict that has unsettled energy markets.

Iran’s Mehr News Agency reported that a 14-point draft agreement calls for lifting oil sanctions and includes a pledge from Tehran to reopen the Strait of Hormuz within 30 days, though the proposal still needs approval from Iranian authorities. President Trump indicated that a deal could be signed in Europe as early as this weekend.

The reported framework also envisions the release of frozen Iranian assets, the suspension of sanctions, and the withdrawal of US forces from the region. Nevertheless, significant risks persist. Tensions remain elevated in the Strait of Hormuz, with reports of drones targeting commercial vessels. Iran has threatened to keep the critical waterway closed, even as tanker traffic has begun to pick up in recent weeks.