Banking News: The United States and Iran have reportedly reached an agreement aimed at ending ongoing hostilities, according to international media reports. The development has contributed to a decline in crude oil prices in the global market.

The two countries, which have been engaged in tensions for nearly two months, are said to have agreed in principle to move towards ending the conflict. However, sources indicate that a final formal agreement is expected to be signed on Friday.

Under the reported framework of the deal, the United States would lift sanctions imposed on Iranian ports, while Iran would be required to reopen the Strait of Hormuz, a key global oil transit route.

The reported diplomatic breakthrough follows a prolonged period of military and political tensions between the two nations. Earlier, former U.S. President Donald Trump had initiated military actions with the stated objective of regime change in Iran, according to the report.

Following signals of a possible agreement, global oil markets have reacted with a downward trend. According to OilPrice.com, Brent crude oil prices have fallen to around USD 83 per barrel in international trading.

Market analysts suggest that the easing of geopolitical tensions in the Middle East has reduced supply risk concerns, leading to a drop in crude oil prices.

The decline in global oil prices is also expected to have an impact on domestic fuel prices in Nepal. With diesel and petrol currently priced above NPR 200 per litre, there are growing expectations that rates could fall below the NPR 200 mark if the downward trend continues in the international market.