President Donald Trump on Saturday announced that a peace agreement has been largely negotiated between the U.S. and Iran, adding that the Strait of Hormuz will be reopened as part of the deal.

Mr Trump in a post on Truth Social said he held talks with leaders from the Middle East as part of the negotiation to resolve lingering crisis between the U.S. and Iran.

“An agreement has been largely negotiated, subject to finalisation between the United States of America, the Islamic Republic of Iran, and the various other countries, as listed.

 “In addition to many other elements of the Agreement, the Strait of Hormuz will be opened,” Mr Trump said.

Concerning Iran and all matters related to a memorandum of understanding on peace, Mr Trump said the final aspects and details of the deal were currently being discussed and would be announced shortly.

Since the launch of “Operation Epic Fury” by the U.S.–Israeli forces against Iran, which resulted in the death of Iran’s Supreme Leader Ayatollah Ali Khamenei on February 28, the crisis has persisted, causing significant disruption in the global oil market.

Amid the heightened tensions, Iran shut the Strait of Hormuz, a key shipping route through which about 20 per cent of global oil and gas trade passes, causing prices to surge worldwide.