The United States and Iran have agreed on the wording of a deal aimed to bring an end to their war in West Asia, said Pakistan's Prime Minister Shehbaz Sharif. He added that Pakistan, which has been leading mediation efforts, is working with both sides on the next steps.
The reported progress in negotiations follows three days of exchanges involving Iran, the United States and Israel earlier this week, which raised fears of a wider conflict across the region.
According to regional officials, the proposed agreement is expected to include the gradual easing of sanctions on Iran and the release of frozen Iranian assets.
A signing ceremony could take place in the coming days once authorities in Washington and Tehran give their approval, with US President Donald Trump saying the agreement could be signed as soon as this weekend.
Oil prices dropped to their lowest levels since the early days of the war as traders reacted to signs of increased traffic through the Strait of Hormuz and growing optimism over an interim peace agreement between the United States and Iran.
Brent crude futures fell 3.4 per cent to settle at $87.33 a barrel, their lowest closing level since March 5, and ended the week down 6.2 per cent.
