Oil prices have fallen sharply to their lowest levels in three months, as markets reacted positively to the anticipated signing of a formal agreement between Washington and Tehran later this week.

Crude oil prices fell over 4% to their lowest levels in over three months.

Oil prices dropped on Sunday after President Donald Trump said an agreement with Iran had been reached and the United States would end its naval blockade on the country.

Oil prices fell to a three-month low after the US and Iran's peace deal