Oil hovers at $88 on USA-Iran deal hopes

June 12, 2026 (MLN): Oil prices declined on Friday after U.S. President Donald Trump declared that Washington had reached a framework agreement with Iran, fueling hopes that the ongoing Middle East conflict may be drawing to a close.

Currently, Brent crude futures are down by $4.89, or 5.22%, to $88.73 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures are down by 4.95%, to $86.24 per barrel by [09:32 am] PST.

President Trump, speaking from the Oval Office, said he expects a formal agreement to be signed within days.

He added that the Strait of Hormuz would be reopened once a deal is concluded.

Earlier Friday, President Trump said he had called off a planned wave of U.S. military strikes against Iran, citing progress in diplomatic talks.

He said negotiations had been elevated to Iran's highest level of leadership and had received approval.

BMO Capital Markets noted oil prices had held up relatively well despite the recent exchange of strikes between the two sides, pointing to sustained diplomatic activity, the rerouting of shipping around the Strait of Hormuz, and a sharp drop in Chinese crude imports as factors that had helped cushion the geopolitical premium in the market, CNBC  reported.

A resolution to the conflict would mark a significant shift in Middle East geopolitics and remove one of the key risk premiums that has supported crude prices in recent weeks.

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