Oil prices fell in early trade in Asia after Pakistan, which has been mediating an end to the US-Iran war, announced a deal that President Donald Trump said would see the reopening of the key Strait of Hormuz shipping route.

Brent crude, the global oil benchmark, was 3.8% lower at $84.02 (£62.48) a barrel, while US-traded oil was down 4.1% at $81.40.

Pakistan's prime minister Shehbaz Sharif said an official signing ceremony would be on Friday, 19 June in Switzerland.

Trump later posted on social media “oil will flow”.

The strait had been effectively closed since shortly after the US and Israel launched airstrikes on Iran on 28 February.

Tehran had threatened to attack vessels using the crucial waterway, through which around 20% of the world's oil and liquefied natural gas (LNG) normally passes.

Global energy markets have been on a wild ride in recent months, with prices often rising or falling sharply in response to developments in the US-Israel war with Iran.

Brent crude, which was trading at around $70 a barrel before the conflict started, peaked at about $120 during the war.

Israel says it targeted the Iran-backed armed group Hezbollah, as Tehran warns this could derail a US-Iran deal to end the fighting.

The US president's comments come as Iran says an exact date has not been decided.

US officials say the deal will lead to the destruction of Iran's enriched uranium, but details are still to be worked out.

The strikes come as Iran's foreign minister says a deal to end fighting with the US is close.

The ban forms part of the government's package of sanctions on Moscow due to the ongoing war with Ukraine.