Oil prices fell sharply on Friday following statements from President Donald Trump indicating that the United States is nearing an agreement with Iran. The selloff raised hopes that months of disruption in Middle East energy markets could soon ease. According to Reuters, the international benchmark Brent crude dropped more than 3% and briefly fell below $87 a barrel at 3:49 p.m. ET, while West Texas Intermediate crude slipped to $84.49 a barrel at the same time, reaching its lowest level in nearly two months. However, Google reported that global oil prices slid five percent this morning, with Brent Crude reaching $85.86 a barrel and West Texas Intermediate reaching $83.32 a barrel. President Trump stated that negotiations with Tehran have advanced significantly and that a framework for a broader agreement could be signed in the coming days. He claimed discussions reached the highest levels of the Iranian government and asserted that a deal is close enough for him to cancel planned military strikes. While describing the negotiations as being in their “final points,” Trump noted that sanctions and the U.S. Naval blockade would remain until an agreement is formally completed. Reuters reported that a peace treaty could potentially be signed in Geneva on June 14, with U.S. Vice President JD Vance and Iranian Parliament Speaker Mohammed Baqer Qalibaf likely representing their respective countries. Despite the price drop, uncertainty remains high. Iranian officials have pushed back against Trump’s claims that a final agreement has been reached, with Tehran stating that negotiations are continuing and no definitive decisions have been made on key issues. Trump characterized Iranian officials as “very dishonorable people” and accused them of leaking inaccurate details about the talks. Market participants are also monitoring global inventories, OPEC production policy, and the pace of shipping traffic normalization. Reuters reported that concerns about tight supplies could still support prices later this summer if exports fail to recover as quickly as expected.