Oil prices edged lower in early Wednesday trade in Asia after US President Donald Trump raised hopes for an agreement with Iran to end the war.
Trump said the US would pause its operation to guide ships through the key Strait of Hormuz trade route - a move that triggered an escalation in attacks in the region - to see if a deal could be made.
Brent, the global benchmark for crude, fell by 1.4% to $108.40 (£79.86) a barrel, while US-traded oil fell by 1.5% to $100.80.
The price of oil jumped by more than 6% earlier in the week as attacks across the Middle East intensified, but has since gradually eased.
Global energy prices have surged since Tehran threatened to attack ships trying cross the Strait of Hormuz, in retaliation against US-Israeli strikes since 28 February.
