U.K.energy stocks fell on Friday as oil prices slid on growing hopes for a peace agreement between the United States and Iran,after President Donald Trump said a deal could be signed as soon as this weekend.

WTI crude futures for July delivery fell about 4%to$84.20 a barrel,while August Brent futures lost 3.7%to$87.07.The retreat weighed on British energy shares,with BP and Shell falling 3.7%and 2.6%,respectively,by 08:13 GMT.

Also,Diversified Energy and Ithaca Energy both dipped more than 4%,and Harbour Energy fell 3.8%.

Speaking at the Oval Office on Thursday,Trump said he expects an agreement within days and that the Strait of Hormuz,largely closed to shipping since Iran’s actions early in the conflict,would reopen once a deal is finalized.

"The strait will officially open as soon as we sign,which could be soon,very soon,maybe over the weekend in Europe,"he said,adding that Vice President JD Vance would attend the signing.

Earlier,Trump said he had called off a planned round of U.S.military strikes against Iran,saying negotiations had been"brought to the highest level of Iranian leadership and approved."

A deal would mark the most significant diplomatic breakthrough in the three-month-old war.Asked whether Supreme Leader Ayatollah Mojtaba Khamenei had personally approved an agreement,Trump told reporters:"I understand the answer is yes."

Tehran,however,pushed back.Iranian state-affiliated outlet Fars reported that Iran had not approved any draft text for an initial memorandum of understanding with Washington.

Trump has made similar claims multiple times since mid-March without a deal materializing,while the two sides exchanged strikes as recently as this week,straining a ceasefire reached in April.