LONDON: Oil prices fell more than 1 percent on Tuesday, paring the previous session’s sharp gains, as Iran reviewed a proposed agreement with the US to halt the war between the two countries, Iran’s Mehr News reported.
President Donald Trump said on Monday that negotiations with Iran were continuing and there would be a deal to extend the ceasefire and reopen the Strait of Hormuz over the next week.
Iran has not yet responded to a proposed final text of the temporary deal, Mehr cited a source as saying. Brent crude futures were down $1.13, or 1.2 percent, to $93.85 a barrel at 1130 GMT, while US West Texas Intermediate fell $1.09, or 1.2 percent, to $91.07 a barrel.
Both benchmarks rose more than 5 percent on Monday, having fallen more than 16 percent in May on hopes of a peace deal.
Despite the developments on talks, “oil flows through the strait remain restricted,” due to the conflict in the region, said UBS analyst Giovanni Staunovo.
