FX.co ★ Oil Falls as Trump Signals Potential Iran Deal

Crude oil fell below $86 per barrel on Friday, its lowest level in nearly two months, after President Donald Trump said a peace agreement with Iran could be reached as soon as this weekend. His comments followed the postponement of planned US military strikes and a warning that Washington could instead target Iran’s oil infrastructure. Iran’s semi-official Fars news agency reported that Tehran was likely to accept the deal, although neither side has yet approved a final text. Trump said the agreement would reopen shipping through the Strait of Hormuz and include Iranian commitments to halt the development of nuclear weapons. Nonetheless, traders remained wary, noting that even a diplomatic breakthrough would face major hurdles before oil flows could return to normal, including clearing mines from the Strait of Hormuz, restarting shuttered production fields, and repairing energy facilities damaged by drone and missile attacks.