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Oil prices slipped to their lowest since March on Monday after US President Donald Trump and Iran’s deputy foreign minister said they had reached an initial deal to end the war and to resume traffic through the Strait of Hormuz.
Brent crude futures fell $4.08, or 4.7 per cent, to $83.25 a barrel by 0415 GMT and US West Texas Intermediate was at $80.53, down $4.35, or 5.1pc. Both contracts fell to their lowest levels since March 10 on Monday after tumbling more than 3pc on Friday.
The US and Iran will sign a memorandum of understanding in Switzerland on Friday, said Prime Minister Shehbaz Sharif, who first announced the agreement.
Trump said on Sunday that the Strait of Hormuz would be open “toll free” and that a US naval blockade of Iranian ports would also end.
