Oil prices fall as U.S. and Iran edge closer to agreement

Oil prices fell and stocks rose Friday on tentative signs that the United States and Iran were nearing a preliminary agreement to end the war.

Negotiators were discussing a new memorandum of understanding that appeared close to winning approval from both sides, although disagreements remained over several key provisions. One major hurdle was the status of the Strait of Hormuz, a critical trading route for oil and gas tankers from the Middle East.

The potential breakthrough followed a volatile week in which U.S. and Iranian forces exchanged sporadic fire, highlighting the risks of renewed escalation as well as the fragility of the current truce.

Oil prices decline

The price of Brent crude, the global benchmark for oil, fell more than 2% in choppy trading, hovering around $90 a barrel for August delivery, currently the most heavily traded contract.

West Texas Intermediate crude, the U.S. benchmark, fell more than 2% to around $87 a barrel for July delivery, currently its most popular contract.

Stocks gain

The S&P 500 rose 0.3% on Friday. The index has set fresh record highs in recent days and is on track for its ninth consecutive weekly gain.

Stocks in Asia, where countries import vast quantities of oil and gas, were mostly higher. South Korea’s benchmark KOSPI jumped 3.5%, while stock markets in Japan and Taiwan rose more than 2%.

In Europe, stocks rose. The Stoxx 600, a broad index that tracks the region’s largest companies, edged up by 0.5%.

Gasoline prices fall

Gas prices fell again Friday, sliding 4 cents to a national average of $4.39 a gallon, according to the AAA motor club. Gas price increases have raised the cost for drivers by 47% since the war began.

Gas prices don’t move in lockstep with crude, usually trailing increases or drops by a few days.

The average price of diesel fell to $5.52 on Friday, up 47% since the start of the war.

This article originally appeared in The New York Times.