Global oil prices dropped below 90 dollars a barrel on Friday after US President Donald Trump said he had called off planned strikes on Iran and indicated that an agreement with Tehran had been approved for signing shortly. The August Brent crude contract on the Intercontinental Exchange traded at 89.37 dollars per barrel, down 1.14 percent. The July West Texas Intermediate contract declined 0.98 percent to 86.85 dollars. The move followed Trump’s statement pointing to reduced tensions in energy markets. The White House posted on X that talks with Iranian leadership had reached the highest levels and been approved, leading to cancellation of strikes and bombings. Multiple nations including Israel, Saudi Arabia, the UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan and Egypt were said to be involved. A naval blockade would stay in place until the transaction is complete, with signing details to follow. Trump later stated at the Oval Office that he expects the pact within days. The shift came after earlier threats of strong action and possible control of Kharg Island. An Iranian official told media the deal was not yet final and accused the US of adding new conditions. The events follow Iran’s announcement of closing the Strait of Hormuz. Three Indian-crewed vessels were reportedly struck amid the tensions. US forces hit MT Jalveer, carrying 20 Indian sailors, days after another similar incident. India repeated calls to halt attacks on commercial ships. The external affairs ministry summoned the US charge d’affaires to protest the strikes and noted risks to maritime safety.
