Oil prices fall on report Iran sent response to draft peace agreement

Oil prices fell Friday on a report that Iran and the U.S. continue to communicate about a draft peace agreement through mediators in Pakistan.

U.S. crude oil futures fell more than 2% to $102.45 per barrel by 8:24 a.m. ET. International benchmark Brent edged 0.41% lower to $109.95.

The moves come on a report from Axios that Iran sent a response to U.S. amendments to a draft peace agreement through Pakistani mediators.

U.S. President Donald Trump, meanwhile, faces a 60-day deadline under the War Powers Resolution related to military action in the Iran war.

Under the 1973 law, a president must withdraw troops within 60 days of notifying Congress of their deployment, unless lawmakers authorize the military action. Congress has not done so.

The Trump administration argued on Friday that a ceasefire reached three weeks ago had “terminated” hostilities between the two sides, according to MSNow. This would allow the White House to avoid seeking Congressional approval for the war.

An administration official said that the absence of direct fire between U.S. forces and Iran since a ceasefire was first agreed to on April 7 means the 60-day clock no longer applies.

“For War Powers Resolution purposes, the hostilities that began on Saturday, February ​28, have terminated,” an administration official told MSNow.

The argument was first raised by Defense Secretary Pete Hegseth during his hearing before the House Armed Services Committee earlier Thursday, where he said the ceasefire effectively paused the war.