Shares of energy companies fell alongside oil futures amid indications that an extension of the U.S.-Iran cease-fire is close.

The U.S., Iran and chief mediator Pakistan all agreed Friday that a peace deal to end the war was nearly complete, though an initial agreement would only kick-start the hardest part of nuclear negotiations over the coming months.

Oil futures fell to $84.88 a barrel, one of the lowest closes since the beginning of the Iran war three months ago, and 25% below its wartime peak. Some strategists warn that the shortages precipitated by the prolonged conflict will continue to ripple through energy markets long after the reopening of the Strait of Hormuz, expected to coincide with the peace deal.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

06-12-26 1738ET