Pakistan’s prime minister Shehbaz Sharif said leaders of both the United States and Iran had signed the peace-deal agreement.

Oil prices have eased back further below 80 US dollars a barrel after the US and Iran signed a deal to end the war and paved the way for the crucial Strait of Hormuz crude shipping route to be reopened.

Benchmark Brent crude fell another 2% to 77.9 dollars a barrel, having reached as low as 77.1 dollars at one stage in Thursday morning trading, after Pakistan’s prime minister Shehbaz Sharif said leaders of both the United States and Iran had signed the peace-deal agreement.

A formal signing ceremony will take place in Switzerland on Friday, but the deal comes into effect straight away and Mr Sharif, who is acting as mediator, said Iran will “instantly reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade”.