SINGAPORE, June 12 (Reuters) - Middle East crude benchmark Dubai premium on Friday fell to its lowest since late February, on growing hopes of a peace deal between the U.S. and Iran.

U.S. President Donald Trump called off the threatened new strikes on Thursday, saying discussions with Iran had progressed and a peace deal that would reopen the Strait of Hormuz could be signed as soon as this weekend. Tehran said it had not made a final decision but large parts of the agreement had been finalised.

Iran's Mehr news agency reported that final negotiations on a memorandum of understanding with the U.S. would focus on nuclear and economic issues but would exclude discussions about Iran's missile programme.

Following the news, Brent futures slid to near two-month lows. Oman and Murban premiums also dropped.

SINGAPORE CASH DEALS

Cash Dubai's premium to swaps fell $1.19 to $3.68 a barrel.

PRICES ($/BBL)

NEWS

Goldman Sachs on Thursday lowered its 2027 average Brent oil price forecast to $80 a barrel, citing stronger supply growth and persistent demand weakness, even as it warned prices could swing sharply under different geopolitical scenarios.

India has barred commercial consumers from buying gasoline and diesel from retail fuel stations and imposed limits on daily diesel purchases to prevent local shortages, amid disruptions to global supply chains due to the war in the Middle East.

Shippers including Maersk and mining giant Vale are turning to ethanol as a marine fuel to cut emissions as abundant supply and lower cost make it more attractive than other low-carbon fuels, with further commercial usage expected as early as next year.

U.S. vacationers are barreling into peak summer driving season just as the gasoline market faces a supply crunch, with resilient domestic demand and surging fuel exports threatening to strain thin inventories and send pump prices climbing.

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