By Anita Hamilton and Adam Clark
Oil prices settled lower Friday after Iran's foreign minister Abbas Araghchi said a memo of understanding between the U.S. and Iran " has never been closer." While President Donald Trump had said a deal was near on Thursday, Araghchi's comments were the first time the Iranians had affirmed that.
Brent crude futures, the international standard, settled down 3.4% at $87.33 a barrel. The last time Brent settled below $88 a barrel was on March 10. West Texas Intermediate futures fell 3.2% at $84.88 a barrel.
The drop comes despite ongoing uncertainty about when the "very detailed" memo of understanding that Trump said was close to being finalized will be signed.
"The Islamabad Memorandum of Understanding has never been closer. Pending its finalization, the media should refrain from entering speculation about its content," Araghchi wrote on X.
While Trump said an agreement could come as soon as this weekend, Iran's foreign ministry spokesperson Esmaeil Baqaei said Iran hasn't set any timetable for completing a deal, the state-sponsored Islamic Republic News Agency reported.
On Friday morning, Trump again threatened Iran, posting on Truth Social: "They better get their act together, and FAST!"
However, when asked Thursday afternoon if Iran's supreme leader, Mojtaba Khamenei, had signed off on the deal, Trump said: "I understand the answer is yes."
Trump called off planned military action on Thursday, citing a breakthrough in negotiations.
"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," Trump wrote on Truth Social. "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."
Trump told reporters that Vice President JD Vance might travel to Europe for a signing ceremony over the weekend. However, local Iranian media reported that government ministers said no final deal had been reached.
Several questions remain unanswered about any agreement. For oil markets, the most important one is how soon the Strait of Hormuz will open and how it will be administered in the future. The strait is critical to the transport of many commodities, including oil. Before the waterway was closed more than three months ago, about 20% of the world's oil passed through it.
Iran's semiofficial Mehr News Agency reported that a draft peace deal would reopen the strait and lift oil sanctions on Iran. But IRNA, Tehran's officials news agency, reported the strait wouldn't return to its pre-conflict levels.
"Unless oil starts shipping freely in the Strait of Hormuz very soon...energy markets could move close to a tipping point in July. In turn, we would be wary about expecting much lower oil prices from current levels," wrote ING analyst Chris Turner in a research note.
Write to Anita Hamilton at anita.hamilton@barrons.com and Adam Clark at adam.clark@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
June 12, 2026 15:41 ET (19:41 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments