Oil prices fell significantly on Monday following the announcement of a peace agreement between the United States and Iran to reopen the Strait of Hormuz. Brent crude, the global benchmark, dropped more than 4 percent to approximately $83 to $84 a barrel, while West Texas Intermediate crude fell over 4 percent to around $81 a barrel. The agreement aims to end a conflict that began in late February, which had previously caused high volatility in energy markets and global economies. The announcement was first made by Pakistani Prime Minister Shehbaz Sharif, who acted as a mediator, followed by statements from U.S. President Donald Trump and Iranian state media. President Trump posted on social media that he authorized the “toll free” opening of the Strait of Hormuz and the immediate removal of the United States Naval blockade. According to Reuters, the agreement includes commitments from Iran to begin on Friday, while the Irish Times reports that the Strait will “open” on Friday upon the signing of the deal. A signing ceremony is scheduled for Friday, June 19, in Switzerland. The reopening of the waterway, which normally carries roughly 20 percent of the world’s oil and liquefied natural gas, led to a surge in Asian stock markets. The Philippines’ stock benchmark rose 6 percent, and Indonesia’s key index gained about 4 percent. In Japan, the Nikkei 225 headed for a record close, while S&P 500 futures were reported up between 0.9 and 1.2 percent. Also, the dollar declined against major peers, and bitcoin reached its highest level in nearly two weeks. While the deal is being viewed as positive news by some, including European Central Bank president Christine Lagarde, some analysts suggest investors should remain cautious until the deal is officially signed. President Trump told the New York Times that he could still restart military attacks on Tehran if a nuclear deal is not reached. Meanwhile, gas prices fell slightly to a national average of $4.07 a gallon, though they remain up about 37 percent since the war began.