Oil prices experienced a decline on Friday as Iran responded to a draft peace agreement proposed by the U.S., signaling a potential shift in ongoing negotiations. Simultaneously, President Trump faces a critical 60-day deadline related to the War Powers Resolution, adding another layer of complexity to the situation. Despite a current ceasefire, tensions remain elevated, with both sides issuing strong statements and preparing for potential escalation.
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Oil prices fell on Friday following reports that Iran has delivered a response to U.S. amendments to a draft peace agreement, facilitated by Pakistani mediators. U.S. crude futures dropped over 2% to $102.45 per barrel by 8:24 a.m. ET, while international benchmark Brent crude edged down 0.41% to $109.95.
The price decline coincides with a looming 60-day deadline for President Trump under the War Powers Resolution regarding military action in Iran. The Trump administration contends that a three-week-old ceasefire has effectively ended hostilities, potentially avoiding the need for Congressional approval for continued military involvement.
However, tensions remain high. Trump has vowed to maintain the U.S. blockade on Iran until a nuclear deal is reached, and Tehran has refused to reopen the Strait of Hormuz unless the blockade is lifted. Reports also indicate that U.S. Central Command prepared a plan for potential strikes against Iran to jumpstart stalled negotiations.
A senior Iranian Revolutionary Guards official reportedly threatened retaliatory strikes on U.S. positions should Washington renew attacks. Despite the ceasefire, the situation remains volatile, with the potential for escalation if negotiations fail to progress.
