Oil prices fell more than $1 per barrel after the US and Iran signed an interim agreement that would end the Iran war, reopen the Strait of Hormuz and waive US sanctions on Tehran’s oil, boosting the oil supply outlook, Reuters reports.

Brent crude futures were down $1.64, or 2.06pc, at $77.91 a barrel as of 0427 GMT, and US West Texas Intermediate fell $1.80, or 2.34pc, to $74.99 a barrel.

The benchmarks resumed their decline, reversing gains made on Wednesday after US President Donald Trump said he could resume his bombing campaign if Iran’s leaders “don’t behave”.

“The sell-off extended as energy markets continued to aggressively price in a faster-than-expected return of Iranian barrels following the recent U.S.-Iran memorandum of understanding,” IG market analyst Tony Sycamore said in a note