Brent Crude Falls 4.3 Percent to $86.36 on U.S.-Iran Talks

Brent Crude fell 4.34 percent to $86.36 per barrel in morning European trade on Friday. The declines followed a report that President Trump canceled a planned strike on Iran after stating a deal had been reached. Both benchmarks extended losses from Thursday.

Iranian state media reported that a draft U.S.-Iran memorandum of understanding includes the United States lifting a blockade and Iran opening the Strait of Hormuz within 30 days. The draft also states that final peace negotiations would not begin until the United States suspends oil sanctions on Iran, lifts the naval blockade outside Hormuz, and releases half of frozen Iranian assets.

Oil prices have now fallen for two consecutive sessions.

Traders cited the reported draft terms as the main driver of the move. Both benchmarks are on track to close at their lowest levels since early March.