Oil prices further declined on Wednesday, extending the previous session's losses following the US-Iran interim peace deal which is expected to allow free passage for vessels through Strait of Hormuz.

Reports suggesting Iran could export oil immediately following the deal also weighed on crude prices.

Brent crude futures dipped 16 cents, or 0.2 percent, to $78.80 a barrel by 0340 GMT, while US West Texas Intermediate fell 25 cents, or 0.3 percent, to $75.80 a barrel.

Both benchmarks fell about 5 percent for a second straight session on Tuesday to stand at ​three-month lows.