WTI drops to $83.83 as US-Iran conflict end nears

International oil prices have experienced a sharp decline, with West Texas Intermediate (WTI) futures falling to $83.83 per barrel as of Friday afternoon. Brent crude futures also saw a significant drop, trading at $86.48 per barrel. This marks the lowest price point for WTI since March 10 and for Brent since March 5, indicating a substantial shift in market sentiment.

The primary driver behind this price drop appears to be the widespread news suggesting an imminent end to the conflict between the United States and Iran. This optimism was further fueled by U.S. President Donald Trump's announcement on Thursday night that he had canceled scheduled strikes and bombings against Iran, signaling a de-escalation of tensions.

President Trump stated that a deal, referred to as a memorandum of understanding (MOU), had been agreed upon in principle and in detail by all involved parties. These parties include the U.S., Israel, Saudi Arabia, the United Arab Emirates, Qatar, and several other Middle Eastern countries. While a signing date has not been specified, Trump indicated that the agreement could be finalized over the weekend in Europe, with U.S. Vice President JD Vance expected to attend the signing.

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The deal, also known as a memorandum of understanding (MOU), was approved "both in concept and great detail" by all involved parties, including the US, Israel, Saudi Arabia, the United Arab Emirates, Qatar, and multiple other Middle Eastern countries.