Global oil prices fell below $90 per barrel on Friday after US President Donald Trump announced that he had cancelled the “planned strikes” on Iran and said a deal with Tehran had been approved and would be signed “shortly”.
The August contract of Brent crude on the Intercontinental Exchange was trading at $89.37 per barrel, down 1.14% from its previous close. The July contract of West Texas Intermediate (WTI) fell 0.98% to $86.85 a barrel.
The decline came after suggested a possible de-escalation in tensions that had rattled energy markets this week.
Deal signals
The White House, quoting Trump on X, said:
“Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening. Discussions and final points have been, in both concept and great detail, approved by all parties involved, including the United States, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt, and others. The Naval Blockade will remain in full force and effect until this Transaction is finalized – Time and place of the signing to be announced shortly.”
Further, speaking at the Oval Office, Trump said he expects an agreement to be signed “over the next few days”.
Mixed messages
The reversal came after the US president earlier on Thursday with fresh strikes and floated the possibility of taking control of Kharg Island, home to one of Iran’s key oil export terminals.
However, an Iranian foreign ministry spokesperson said the deal had not yet been finalized, while accusing the US of making “excessive demands” and introducing new conditions into the negotiations, according to a BBC report.
The latest developments come after the conflict escalated earlier this week, with Iran announcing a complete closure of the .
India protests
Amid the escalation in recent days, three vessels carrying Indian crew members have reportedly been hit by US forces.
US forces on Thursday struck MT Jalveer, a Guinea-Bissau-flagged vessel carrying 20 Indian crew members. The incident came days after a similar attack on another ship carrying Indian sailors, prompting India to reiterate its call for an end to attacks on commercial shipping in the region.
Addressing reporters on Thursday, ministry of external affairs (MEA) spokesperson Randhir Jaiswal said attacks on ships in the region were a direct consequence of the ongoing conflict and posed serious concerns for maritime safety.
Jaiswal said US chargé d’affaires Jason Meeks was summoned to the ministry on Wednesday to register India’s strong protest over attacks on vessels carrying Indian crew members.
He added that India had separately condemned the attack on Settebello on Monday, in which three Indian nationals were killed.