The strait – which links the region to world markets – has been subject to a double blockade, with curbs imposed by both Iran and the US.

Trump had said an agreement with Iran to open the Strait of Hormuz, among other issues, was largely negotiated and would be announced soon.

Global crude benchmark Brent fell as much as 5.2% to $98.12 a barrel, while West Texas Intermediate was near $92.

Crude oil futures dip amid cautious market response to US-Iran deal negotiations, signaling potential impact on global oil supply.