US equity futures were higher pre-bell Friday as traders anticipated a peace deal between the US and Iran finally being completed and the Strait of Hormuz reopened.

Dow Jones Industrial Average futures were 0.6% higher, S&P 500 futures were up 0.5%, and Nasdaq futures were 0.5% higher.

The draft version of the memorandum of understanding includes a commitment from the US to lift oil sanctions and a pledge from Iran to reopen the Strait of Hormuz, according to a CNBC report citing Iranian state media. The two nations could sign the agreement as early as next week, Bloomberg reported, citing senior officials.

President Donald Trump said in a post on Truth Social that he had cancelled planned strikes on Iran, as talks with Iranian leadership had resulted in final points being "approved by all parties involved."

Traders took note of the latest round of earnings, with Adobe (ADBE) reporting higher fiscal Q2 adjusted earnings and revenue.

Oil prices were lower, with front-month global benchmark North Sea Brent crude down 3.4% at $87.32 per barrel and US West Texas Intermediate crude 3.4% lower at $84.72 per barrel.

The University of Michigan consumer sentiment index for June, slated for 10 am ET, is expected at 46.0, up from 44.8 previously.