Asian stock markets have surged and oil prices have receded, boosted by optimism that the United States and Iran will reach a deal to end their war that has hobbled global energy supplies, AFP reports.

By Thursday evening, negotiators had edged toward a deal to extend their fragile ceasefire for 60 days, though approval from President Donald Trump was still needed, US sources told AFP.

That news reversed a sluggish start for shares on Wall Street, with major indices closing higher on the day.

During Friday morning trading in Asia, the price of Brent crude was down 0.9 per cent to around $93 a barrel, while primary US benchmark West Texas Intermediate shaved 1.1pc to just below $88 a barrel.