U.S. oil prices drop to $84 a barrel after Pakistan says a U.S.-Iran peace deal has been reached

By Isabel Wang and Myra P. Saefong

WTI prices have been range-bound since the April 7 cease-fire, with further declines likely requiring a meaningful pickup in Hormuz traffic

Iran's semiofficial Mehr News Agency reported that a draft peace deal would reopen the Strait of Hormuz.

Oil prices fell Friday, with the international benchmark Brent crude briefly sliding to its lowest levels since the early days of the Iran conflict, after Pakistan said a peace deal between the U.S. and Iran had been reached.

The West Texas Intermediate contract for July delivery (CL.1) (CLN26) was down 3.8% to $84.26 a barrel, while the Brent crude August contract (BRN00) (BRNQ26) was off by 3.9% at $86.88 a barrel, after earlier hitting its lowest intraday level since early March, according to FactSet data.