Oil Prices Fall for Second Day to $80s on Hopes of US-Iran Peace Deal

International oil prices have fallen for two consecutive days, with Brent crude futures for August delivery closing at $87.33 per barrel and U.S. West Texas Intermediate (WTI) futures for July delivery at $84.88. These are the lowest levels seen since early March for Brent and mid-April for WTI. The market's reaction is driven by growing expectations that a peace agreement between the United States and Iran is nearing completion.

Market sentiment shifted following statements from Iranian officials and the U.S. President. Iran's Foreign Minister Abbas Araghchi announced in a televised address that a deal with the U.S. had entered its final stages and secured approval from Iran's highest authorities, including the Supreme Leader and the National Security Council. This development suggests a significant de-escalation in regional tensions.

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The agreement with the United States has entered its final stage and has received the approval of the Iranian leadership, including the Supreme Leader and the National Security Council.

Adding to the optimism, U.S. President Donald Trump indicated in a call with Axios that a memorandum of understanding (MOU) for ending hostilities could be signed as early as this weekend or early next week. These statements have directly influenced global oil markets, leading to the significant price drop as traders anticipate a reduction in geopolitical risk.

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I think we can sign an MOU to end the war this weekend or Monday.