Oil prices fell in Asia on Monday after the US and Iran announced an agreement that is expected to reopen the key Strait of Hormuz shipping route.

Brent crude, the global oil benchmark, was 4.8% lower at $83.18 a barrel, while US-traded oil was down 5.6% at $80.13.

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

Announcing the deal in a Truth Social post, US President Donald Trump said: "The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! 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. Ships of the World, start your engines. Let the oil flow!