Oil prices have declined by more than 1 percent after US President Donald Trump said he had paused a planned attack on Iran in order to allow time for negotiations aimed at ending the war in the Middle East.

Following the announcement, Brent crude futures fell to just above $110 per barrel, while US oil futures slipped to $103 per barrel, The Caspian Post reports, citing Al Jazeera.

Traders are closely watching ongoing negotiations between Washington and Tehran amid concerns over the potential impact of a prolonged closure of the Strait of Hormuz.

The waterway has historically handled around one-fifth of global oil and liquefied natural gas supplies on a daily basis.