Following announcement by the United States President, Donald Trump, last weekend, that a deal to end the near-four month war with Iran is ‘all signed,’ crude oil prices took a huge tumble to as low as below the $80 mark.

This is just as the U.S leader also disclosed, Tuesday, that the Strait of Hormuz will fully reopen by Friday, after both parties in the conflict sign the physical peace deal.

Crude oil prices, Tuesday, dropped to a three-month low following market optimism over the expected reopening of the Strait of Hormuz after a peace deal between the United States and Iran was reached.

The Brent North Sea crude, the international benchmark, dropped 3.8 per cent to $79.99 a barrel, dipping under $80 for the first time since early March.

The main US oil contract, West Texas Intermediate, slid 3.9 per cent to $77.61 a barrel.

Meanwhile, the official signing ceremony of the peace deal between both countries is set to be held on June 19 in Switzerland.

In a post on Truth Social, the president confirmed; ‘The deal with the Islamic Republic of Iran is now complete.

‘I hereby fully authorise the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorise the immediate removal of the United States Naval blockade,’ he added.

Asked at the G7 meeting in France, Tuesday, when the text of the deal would be released, Trump said: ‘It’s a very powerful document, and I want it to be released. So probably pretty soon.’

Iran said Tuesday that talks with the United States on its nuclear programme and sanctions relief would likely begin later this week, as Trump said the Strait of Hormuz would ‘completely open’ once the foes sign their deal.

Officials say negotiations over a final deal would take place in a 60-day window after the memorandum of understanding to end nearly four months of war triggered by US-Israeli strikes on Iran is physically signed.

Commenting, Iranian Foreign Minister Abbas Araghchi said:

“Yes, it (peace deal) could bring lasting stability. It may work, but I remain sceptical. No, I expect it to break down. It’s too early to tell

‘Likely on Friday, at a location to be determined… a new round of negotiations between Iran and the United States to reach a final agreement will begin.

‘In the final agreement, decisions will be made on the nuclear issues and the lifting of sanctions,” Araghchi said.

According to Iran’s deputy foreign minister, Mohammad Bagher Ghalibaf, the Islamic republic’s top negotiator, will attend the signing in Switzerland.

The US side will be represented by Vice President JD Vance, who said Trump himself might also attend.

The developments came after Trump said an Iranian blockade on the crucial Hormuz Strait oil and gas route would be fully lifted by the same day, which would be a major boost to the global economy.

The US had, in retaliation, imposed its own blockade on Iranian ports.

‘Ships are starting to move, many loaded up with oil, out of the Strait of Hormuz,’ Trump said Monday, adding later that he did not ‘think we will need much help’ keeping the waterway open.

A senior US administration official, however, said Trump, Vance and Iran’s negotiator had already signed the text electronically.

‘One of the core parts of the agreement is that the [International Atomic Energy Agency] and the United States are going to help Iran destroy the highly enriched stockpile, and that’s something that’s spelled out very clearly’ in the MoU, Vance said.