Oil prices fell below $100 a barrel this morning over signs of new US-Iran dialogue to end their war.
Brent crude was at $97.8 in early trade, while US WTI crude was at $96.83.
Yesterday, oil futures had jumped almost 6% to more than $100 a barrel as the US Navy prepared to block ships to and from Iran via the Strait of Hormuz after the two warring nations failed to reach a deal to end the war at their Islamabad talks.
Reuters reported negotiations between Washington and Tehran were still alive while US Vice President JD Vance said in an interview the US expected Iran would make progress on opening the Strait of Hormuz.
In an interview on Fox News' Special Report with Bret Baie, Vance said, "I wouldn't just say that things went wrong. I also think things went right. We made a lot of progress."
"Whether we have further conversations, whether we ultimately get to a deal, I really think the ball is in the Iranian court, because we put a lot on the table," Vance said. "They moved in our direction, which is why I think we would say that we had some good signs, but they didn't move far enough,"
New York Times reported that the two sides exchanged proposals on suspending Iran’s nuclear programme at Islamabad, but remain far apart on the duration of any deal. Iran has offered to pause uranium enrichment for up to five years, while the administration of Donald Trump is pushing for a 20-year suspension, according to officials from both sides.
Despite the gap, the discussions suggest there may still be a path forward. Officials said another round of talks is being considered, though no date has been fixed.
Meanwhile, the price of physical crude oil cargoes for prompt delivery to Europe hit a record high near $150 a barrel on Monday and those for Africa hit new peaks, according to LSEG data and traders, Reuters said.
Spot gold was up 0.6% at $4,768.19 per ounce, as of 0237 GMT, after hitting its lowest level since April 7 in the previous session. US gold futures for June delivery rose 0.5% to $4,790.70.