Oil prices fall after Pakistan says U.S. and Iran have reached final peace deal text

Crude oil prices fell Friday after Pakistan Prime Minister Shehbaz Sharif said the U.S. and Iran have reached a final draft of a peace deal.

U.S. crude oil futures were down 3.6% to $84.57 per barrel by 12:48 p.m. ET. Brent futures, the international benchmark, lost 3.6% to $87.09.

Sharif, who has mediated U.S.-Iran talks, sought to dispel conflicting reports that cast doubt on an agreement. He said an "incessant misinformation campaign" was being "waged by those who want to sabotage a peace deal."

"Setting aside the noise, we can confirm that a final, agreed upon text of the peace deal has been reached and Pakistan is now working closely with both sides to finalize the next steps," Sharif said.

"Peace has never been this close as it is now," the prime minister said.

Prices fell about 5% at the session low after President Donald Trump said Thursday the U.S. had basically settled the war with Iran and an agreement could be signed in days.

But Trump's tone shifted Friday after Iranian state media released a document described as a draft deal. The U.S. president denied the Iranian text represented what Washington and Tehran had agreed in writing.

"The terms that Iran leaked out to the Fake News have NOTHING to do with the terms that were agreed to, in writing," Trump said in a Truth Social post.

Trump disparaged the Iranians as "very dishonorable people to deal with" who do not negotiate in good faith. He accused Iran of launching a drone at an Indian vessel overnight, denouncing the attack as unacceptable.

"They better get their act together, and FAST!" the president said.

The Iranian state-news agency Mehr published a document in which the U.S. would agree to withdraw its forces from around Iran, lift its naval blockade in 30 days and provide $300 billion in reconstruction money to Tehran.

Iran would reopen the Strait of Hormuz in 30 days but under arrangements set by Tehran, according to Mehr.

Shortly after Trump denied the Iranian report, Iran's Foreign Minister Seyed Abbas Araghchi said in a social post that a memorandum of understanding between the U.S. and Iran "has never been closer." Trump then reposted Araghchi's post.

"Pending its finalization, the media should refrain from entering speculation about its content," Araghchi said. "In line with our responsible and transparent approach, all details will be shared with the public in due course."

U.S. Vice President JD Vance said fake information was circulating about a deal to reopen Hormuz and end Iran's nuclear program. Vance said Tehran will not receive any cash and funds will not be released just for signing a deal or attending a meeting.

"The deal is structured to ensure that the US and its allies concerns are prioritized, and that if the Islamic Republic of Iran meets its obligations, then economic benefits will flow to them and to the entire region," the vice president said in a social media post.