By Adam Clark and Anita Hamilton
Oil prices fell sharply again Friday, despite uncertainty over whether Iran was on board with the "very detailed" memo of understanding that President Donald Trump said was close to being finalized.
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."
Brent crude futures, the international standard, were down 3.5% at $87.22 a barrel. West Texas Intermediate futures fell 3.6% at $84.57 a barrel. The last time Brent settled below $88 a barrel was on March 10.
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 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 that 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 Adam Clark at adam.clark@barrons.com and Anita Hamilton at anita.hamilton@barrons.com
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June 12, 2026 11:33 ET (15:33 GMT)
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