Iran informed the UN's maritime agency that non-hostile vessels may resume transit through the Strait of Hormuz. The critical waterway had been effectively closed for several weeks.
U.S. President Donald Trump confirmed that negotiations are underway. He noted that Iran offered a significant energy-related concession to facilitate the de-escalation.
The Strait of Hormuz supplies one-fifth of the world's oil and liquefied natural gas. This reopening addresses what has been described as the worst energy supply shock in history.
Brent crude futures fell more than 5% following the announcement. Prices dropped below $100 per barrel as investors reacted to the potential end of supply disruptions.