This is a common fungal disease called peach leaf curl.  It is prevented with a copper fungicide treatment in late fall or very early spring.  It showed up in years when there is extended wet & cool weather as the buds are starting to swell in the very early spring.  Your tree may experience some leaf drop, but should recover assuming it is otherwise relatively healthy.

See the following article for more details.

Peach leaf curl (msu.edu)