Texas oil closes below $85 amid hopes of US-Iran deal

West Texas Intermediate (WTI) crude oil futures for July delivery settled below $85 a barrel on Friday, concluding the week with a significant decrease of 3.23%. The benchmark US crude experienced a decline of $2.83 from its previous closing price, settling at $84.88 per barrel.

This price drop was largely driven by ongoing reports suggesting a potential imminent peace agreement between the United States and Iran. Information pointing towards a resolution of Middle East conflict has been steadily pressuring oil prices downward throughout the week. Despite recent escalations in hostilities between the US and Iran, crude oil prices did not see substantial increases.

Over the past five days, oil prices have fallen by more than 6%, and nearly 20% compared to the previous month. The market sentiment reflects anticipation of reduced geopolitical tensions impacting global oil supply dynamics.

Pakistan's Prime Minister Shehbaz Sharif stated on Friday that a "definitive and consensual peace deal text has been reached" between Washington and Tehran, adding that "peace has never been as close as it is now." Earlier, Iran's Foreign Minister Abbas Araghchi indicated that a "memorandum of understanding" with Washington "has never been closer." A senior US administration official, speaking anonymously, expressed confidence in signing an agreement within days that would meet the US president's "main objectives."