The US and Iran have agreed a peace deal which will see the Strait of Hormuz reopened to allow safe passage of shipping vessels around the globe.
Oil prices fell overnight in response to the news the framework of a deal had been agreed between parties, with Brent crude, the global oil benchmark, 4.3% lower at $83.55 (£62.10) a barrel on Monday, while US-traded oil was down by 4.9% at $80.74.
US President Donald Trump said "The deal with the Islamic Republic of Iran is now complete."
He went on to say he had authorised the "toll-free opening of the Strait of Hormuz", and the removal of the US blockade of Iran’s ports, the BBC reports.
Trump added that the deal would "bring peace and security to the whole region”, and that the opening of the strait would mean “oil will flow on both ends again for the region, and the world".
Iran’s Deputy Foreign Minister Kazem Gharibabadi confirmed overnight a deal with the US had been finalised and that the official signing would happen in Switzerland on Friday.
He said: "An immediate and permanent end to the war and military operations on different fronts including Lebanon will be announced tonight."