Oil prices extended their decline on Tuesday, although they initially staged a modest recovery after plunging nearly 5% in the previous session following reports of a breakthrough agreement between the United States and Iran.

Market sentiment remained volatile, however, as traders weighed the lack of details surrounding the preliminary accord and the growing realization that the resumption of oil flows through the strategic Strait of Hormuz could take longer than initially anticipated.

Brent crude futures were trading at $82.94 a barrel, while US West Texas Intermediate crude stood at $80.66 a barrel.

On Monday, oil prices settled at their lowest level since March 4 after US President Donald Trump announced that a memorandum of understanding had been signed to end the US-Israeli conflict with Iran. The conflict had led to the closure of the Strait of Hormuz — a vital waterway that normally carries about one-fifth of global oil supplies — and resulted in the shutdown of an estimated 14 million barrels per day of production.