The memorandum of understanding, which was dictated to reporters by senior US officials, also says Iran and Oman will “define the future administration and maritime services in the Strait of Hormuz”.

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

"The Deal with the Islamic Republic of Iran is now complete," President Donald Trump said in a social media post. "Congratulations to all!"President Donald Trump and Iranian…