SINGAPORE (Reuters) - Oil prices slipped on Monday after US President Donald Trump and Iran's deputy foreign minister said they have reached a deal to halt the war and to resume traffic through the Strait of Hormuz.
Brent crude futures fell $3.51, or 4.02%, to $83.82 by 2203 GMT and US West Texas Intermediate was at $80.95 a barrel, down $3.93, or 4.63%.
Prime Minster Shehbaz Sharif has said a deal between the US and Iran has been reached.
“Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED," he writes on X.
"Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon." US President Donald Trump has confirmed Pakistan's report that the US and Iran have reached a deal.
"The Deal with the Islamic Republic of Iran is now complete," he writes on Truth Social.
"I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade," he says.
"Ships of the World, start your engines. Let the oil flow!"