Pakistan, June 18 -- Oil prices fell sharply on Thursday after the United States and Iran approved a deal aimed at ending hostilities. The agreement is expected to restore shipping through the Strait of Hormuz and ease supply concerns. However, global equity markets remained under pressure as investors reacted to a tougher US interest rate outlook.

Crude futures dropped about two percent as traders welcomed signs of stability in the Middle East. The reopening of the Strait of Hormuz is expected to improve the flow of oil and cargo shipments. As a result, fears of supply disruptions that previously pushed energy prices higher began to fade.

Meanwhile, stock markets delivered a mixed performance across Europe and Asia. Investor sentiment ...