Pakistan is to reopen crucial supply routes to Nato-led forces in Afghanistan following a US apology for killing 24 of its soldiers in November.

Hundreds of tankers and supply trucks bound for Afghanistan have been parked up near oil terminals in Karachi for months.

The US Secretary of State Hillary Clinton has now offered "sincere condolences" to the families of those killed when US air strikes hit two posts on the Afghan border.

Pakistan, in turn, has decided to forego the transit fees and other benefits they were demanding, ending the seven month-long blockade.

They had been asking for $5,000 (£3,200) per container to let supplies flow again. US officials say the existing charge of $250 per truck will not change.

During the dispute the US has moved some supplies to Afghanistan via a more costly route through Central Asia.

The shorter and cheaper supply route through Pakistan is crucial to the US as it prepares to pull all combat troops out of Afghanistan by 2014.

Reports suggest the US may now release over $1bn in funding to Pakistan's military.

Correspondents say the seven-month standoff has clearly shown the pitfalls in the US-Pakistan relationship.