Oil prices fell on Friday after Pakistani Prime Minister Shehbaz Sharif said the United States and Iran had reached a final draft of a peace agreement.
usa crude oil Futures were down 3.6% at $84.57 a barrel by 12:48 p.m. ET. brent Futures, the international benchmark, fell 3.6% to $87.09.
Mr Sharif, who has been mediating talks between the US and Iran, sought to dispel contradictory reports casting doubt on the deal. He said there was a “relentless campaign of misinformation by those who want to sabotage the peace agreement.”
“Noise aside, I can confirm that the peace deal text has finally been agreed upon and Pakistan is currently working closely with both sides to finalize the next steps,” Sharif said.
The Prime Minister said, “Peace has never been closer than now.”
Prices fell about 5% to a trading low on Thursday after President Donald Trump said the United States had essentially settled its war with Iran and could sign a deal within days.
But on Friday, Trump’s tone changed after Iranian state media released a document purported to be a draft agreement. The US president has denied that the Iranian document represents a written agreement between the US and Iranian governments.
“The terms Iran leaked to Fake News have nothing to do with the terms agreed to in writing,” Trump said in a post on Truth Social.
President Trump scorned the Iranians, calling them “a very disgraceful group of people to deal with” who would not negotiate in good faith. He accused Iran of launching drones at Indian ships during the night and called the attack unacceptable.
“They better get their act together, and fast!” said the president.
Iran’s state news agency Mehr published a document in which the US agrees to withdraw troops from around Iran, lift the naval blockade within 30 days and provide Tehran with $300 billion in reconstruction funds.
Mehr said Iran would reopen the Strait of Hormuz within 30 days, but under a deal set by Tehran.
Immediately after President Trump denied the Iran report, Iranian Foreign Minister Seyyed Abbas Aragushi said in a social post that the memorandum of understanding between the United States and Iran was “closer than ever.” Mr. Trump later reposted Mr. Araguchi’s post.
“The media should refrain from speculating about the content until the final decision is made,” Araguchi said. “Following our responsible and transparent approach, all details will be shared with the public in due course.”
U.S. Vice President J.D. Vance said there was disinformation circulating about the agreement to reopen the port of Hormuz and end Iran’s nuclear program. Vance said the Iranian government would not receive any cash and no funds would be released simply for signing an agreement or attending a meeting.
“The agreement is structured to ensure that the concerns of the United States and our allies are prioritized and that economic benefits flow across the United States and our allies if the Islamic Republic of Iran fulfills its obligations,” the vice president said in a social media post.
