U.S. energy shares declined in premarket trading and Brent and WTI crude futures dropped more than 5 percent following reports that Washington and Tehran reached an initial deal to keep the Strait of Hormuz open without tolls or blockade. President Trump stated on Sunday that a naval blockade of Iranian ports would end and that passage would be toll-free. Pakistan's prime minister indicated the two countries will sign a memorandum of understanding in Switzerland on Friday.