Reports in Iranian state media said on Friday that the proposed peace agreement between the United States and Iran would include a commitment from Tehran to reopen the Strait of Hormuz and a promise from Washington to lift oil sanctions.
The Iranian Mehr News Agency said that the memorandum of understanding with the United States will also include the release of frozen Iranian funds, adding that the final negotiations will focus on nuclear and economic issues. Mehr Agency reported that discussions about Iran’s missile program would be excluded.
The report stated that the draft requires completion by the relevant authorities.
Brent crude futures, the global oil benchmark, last fell 4.3% to $86.47 per barrel. The contract fell below $90 a barrel on Thursday after US President Donald Trump indicated that a deal to end the war in Iran, now in its fourth month, could be close.
Trump said on Thursday that an agreement had been reached with Iran and that a final document could be signed soon, perhaps even over the weekend. Speaking to reporters, Trump said the United States and Iran had reached an agreement to open the Strait of Hormuz — a vital passage for a fifth of the world’s oil and gas that has been effectively closed for months — and end the US naval blockade of Iran’s ports.
Trump said: “We just reached a major settlement for the war with Iran, and we will be finalizing the documents, which should happen within the next few days. We will probably have a signing, perhaps in Europe.”
He later told supporters at a virtual rally: “We ended the war with Iran today,” and that the country had agreed to “never have a nuclear weapon.”
Earlier, Trump backed away from the new attacks he promised to launch against Iran, and canceled the strikes and bombings that were scheduled to be carried out on Thursday evening. He also noted that “discussions and final points” on the peace agreement with Iran “were approved by all parties involved.”
Source: Investing.com
