SynopsisIranian foreign minister Abbas Araghchi posted on Friday on X that an agreement "has never been closer". He gave no details, saying a final deal was still pending. US President Donald Trump shared Araghchi's post on his own social media. Trump, who turns 80 on Sunday, called off threatened strikes on Thursday, while Iran's Mehr news agency reported that final negotiations on a MoU with the US would focus on nuclear and economic issues but would exclude discussions about Iran's missile programme.LONDON: A memorandum of Understanidng (MoU) between the United States and Iran to halt the war in the Gulf could be signed as soon as Sunday, a western source said on Friday, with Geneva emerging as the likeliest venue.Iranian foreign minister Abbas Araghchi posted on Friday on X that an agreement "has never been closer". He gave no details, saying a final deal was still pending. US President Donald Trump shared Araghchi's post on his own social media.Trump, who turns 80 on Sunday, called off threatened strikes on Thursday, while Iran's Mehr news agency reported that final negotiations on a MoU with the US would focus on nuclear and economic issues but would exclude discussions about Iran's missile programme.Iran's IRNA news agency meanwhile said nuclear talks would take place within a 60-day period after signing the MoU.Crude Drops on OptimismAs a result of the developments, oil prices fell over 3% on Friday to their lowest in nearly two months after US President Donald Trump cancelled new strikes on Iran, reducing fears of an escalation of hostilities following tit-for-tat attacks earlier in the week.'Totally unacceptable': Trump trashes Iran’s deal terms, condemns 'attack on Indian ships'Brent futures were down $3.13, or 3.46%, at $87.25 a barrel by 4:41 PM, while US West Texas Intermediate (WTI) crude dropped $3.14, or 3.58%, to $84.57. Both contracts were at their lowest since April 17.On Thursday, Iran announced the closure of the Strait of Hormuz, through which vessel traffic was already severely limited, saying it would fire on any ship trying to pass through the waterway. The strait normally carries a fifth of global oil and liquefied natural gas shipments.The US military said on social media that commercial ships continued to transit the waterway.Donald Trump, Narendra Modi look to repair ties in shadow of new US strikesGoldman Sachs lowered its 2027 average Brent forecast to $80 a barrel on higher supply and lower demand, but expects prices to exceed the 2025 average on stockpiling of OECD commercial oil stocks and a security premium for disruptions.The Organization of the Petroleum Exporting Countries lowered its forecast for 2026 world oil demand growth to 970,000 barrels per day on Thursday from a previous 1.17 million bpd, marking its second straight downward revision.The producer group also said consumption would rebound later, raising its demand growth forecast for 2027. It expects 2027 oil demand to rise by 1.73 million bpd, up 190,000 bpd from its previous forecast.Read More News on