Oil prices fall on news of a U.S.-Iran peace agreement, with WTI at84dollars

International oil prices fell on Friday after Pakistan announced that a peace agreement between the United States and Iran had been reached. Selling intensified in the futures market immediately after the announcement. Prices declined broadly during trading hours.

West Texas Intermediate crude was traded at84dollars per barrel. Brent crude, the international benchmark, briefly fell to levels seen at the start of the conflict. Both benchmark prices came under downward pressure.

The agreement was reportedly set to include the reopening of the Strait of Hormuz. Iran's state-run media was said to have reported a draft of the agreement. Expectations appeared to emerge that, if the agreement materializes, the risk associated with passage through the strait would decline.

After Pakistan's announcement, market participants reacted sensitively to related news. The crude oil market showed a pattern of heightened short-term volatility driven by geopolitical news. Selling pressure prevailed in Friday's session.

Brent's decline this time brought it down to levels comparable to those seen in the early stages of the conflict. A single announcement had a major short-term impact on oil prices. Volatility continued throughout the week.

Friday's closing price reflected the broader downward trend. The news triggered a change in the market's risk premium. Whether there will be additional official announcements remains a variable for the future price trend.