US President Donald Trump announced the deal, despite earlier strikes threatening talks.

Oil prices have surged as shipping in the Strait of Hormuz has been cut off.

The president announced the breakthrough shortly after Pakistan’s PM said both sides had agreed to end hostilities “on all fronts”, with a deal set to be formally signed on Friday.

In a social media post, Trump said the strait would be open "toll free" and that the US naval blockade would also end.

‘Ships of the World, start your engines,’ Trump wrote on Truth Social on Sunday afternoon

The United States and Iran have agreed on a peace framework aimed at ending the conflict, lifting the U.S. blockade of Iran and reopening the Strait of Hormuz, a key global oil…