Oil prices fell on Friday on the prospect of more supply returning to the market after oil tankers began to move through the Strait of Hormuz following the signing of the U.S.-Iran interim peace deal.

China is expected to keep benchmark lending rates unchanged for a 13th consecutive month in June, a Reuters survey showed, as a K-shaped divergence in the broad economy persists.

Rising inflation and a 30% jump in oil prices are dampening global growth, but leaders of the world's top economies are unlikely to blame U.S. President Donald Trump for the war-driven slowdown when they meet in France to discuss the economy on Wednesday.

U.S. business inventories increased strongly in April, suggesting that inventory investment could contribute to economic growth in the second quarter.

Contracts to purchase previously owned U.S. homes increased more than expected in May, though higher mortgage rates and tight supply remained constraints for the housing market.

The U.S. and Iran released the text of an interim agreement their presidents have signed to end their war on Wednesday, with U.S. President Donald Trump threatening to resume attacks and kill Iranian officials if they failed to honour their commitments.