Wall Street stocks have opened higher after the United States and Iran announced a deal to end the Middle East war that sent oil prices sharply lower, AFP reports.

While the two sides have characterised key elements of the agreement differently, the announcement has prompted about a five per cent retreat in oil prices.

About 15 minutes into trading, the Dow Jones Industrial Average was up 1pc at 51,703.60. The broad-based S&P 500 climbed 1.5pc to 7,544.90, while the tech-rich Nasdaq Composite Index gained 2.4pc to 26,518.12.

The accord does not immediately resolve key questions such as the future of Iran’s nuclear programme, which will be part of a 60-day negotiation.