Crude Oil Falls to 8-Week Low

2026-06-12 08:44 By Agna Gabriel 1 min. read

Crude oil fell more than 4% to below $84 per barrel on Friday, extending losses to an eight-week low as hopes grew that the US and Iran could reach a peace agreement and end the conflict that has disrupted energy markets.

Iran’s Mehr News Agency reported that a 14-point draft agreement includes the lifting of oil sanctions and a commitment from Tehran to reopen the Strait of Hormuz within 30 days, although the proposal still requires approval from Iranian authorities.

President Trump said a deal could be signed as soon as this weekend in Europe.

The reported agreement would also involve the release of frozen Iranian funds, the suspension of sanctions, and the withdrawal of US forces from the region.

Despite improving sentiment, risks remain as tensions continue in the Strait of Hormuz, with reports of drones targeting commercial vessels.

Iran has threatened to keep the waterway closed, though tanker traffic has started to increase in recent weeks.



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Crude Oil Falls to 8-Week Low
Crude oil fell more than 4% to below $84 per barrel on Friday, extending losses to an eight-week low as hopes grew that the US and Iran could reach a peace agreement and end the conflict that has disrupted energy markets. Iran’s Mehr News Agency reported that a 14-point draft agreement includes the lifting of oil sanctions and a commitment from Tehran to reopen the Strait of Hormuz within 30 days, although the proposal still requires approval from Iranian authorities. President Trump said a deal could be signed as soon as this weekend in Europe. The reported agreement would also involve the release of frozen Iranian funds, the suspension of sanctions, and the withdrawal of US forces from the region. Despite improving sentiment, risks remain as tensions continue in the Strait of Hormuz, with reports of drones targeting commercial vessels. Iran has threatened to keep the waterway closed, though tanker traffic has started to increase in recent weeks.
2026-06-12
Oil Falls as Trump Signals Potential Iran Deal
Crude oil dropped below $86 per barrel on Friday, hitting its lowest level in nearly two months after President Donald Trump said a peace agreement with Iran could be reached as early as this weekend. The remarks came after he delayed planned military strikes and warned that the US could target Iran's oil infrastructure. Iran's semi-official Fars news agency reported that Tehran was likely to accept the deal, although no final text has been approved by either side. Trump said the agreement would reopen shipping through the Strait of Hormuz and include Iranian commitments to forgo developing nuclear weapons. Still, traders remained cautious, as even a breakthrough would face significant obstacles before oil flows fully normalize, including clearing mines from Hormuz, restarting idled production fields, and repairing energy facilities damaged by drone and missile attacks.
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Crude Oil Slips Toward $86
Crude oil fell more than 4% toward $86 per barrel on Thursday, the lowest since April, after President Trump suspended planned attacks against Iran scheduled for this evening, while also suggesting that Washington and Tehran were close to reaching an agreement to end the war. He later told reporters that a deal, including the reopening of the Strait of Hormuz, could be signed as early as this weekend, likely in Europe. Meanwhile, Iran's semi-official Fars news agency reported that Tehran was likely to approve the agreement, though it has yet to give a formal response. So far, oil facilities have largely been spared, which has helped prevent the kind of supply shock many traders had feared and kept prices well below earlier conflict peaks. On the demand side, Chinese imports from Saudi Arabia are expected to fall in July, while tanker traffic through the Strait of Hormuz has increased.
2026-06-11