Oil prices fell more than 3.4% on Monday after Iranian negotiators said progress had been made toward a peace deal with the United States, including waivers for crude and petrochemical export.What happened: International benchmark Brent crude fell to $78.68 as of 7:06 a.m. EDT following reports from mediators Pakistan and Qatar that Washington and Tehran had agreed on a road map on reaching a final deal within 60 days after weekend talks at the Qatari-owned Swiss resort of Burgenstock concluded Monday morning.The sides also agreed on a framework to end fighting in Lebanon between Iran-backed Hezbollah and US ally Israel, while establishing a communications channel to facilitate commercial shipping through the Strait of Hormuz.Why it matters: Although Iran and the United States signed a memorandum of understanding last week to end the war and curb Tehran’s nuclear program, optimism was tempered by Iran’s announcement on Friday that it had once again closed the Strait of Hormuz, despite pledging under the agreement to allow the free passage of commercial vessels. In a Truth Social post on Sunday, US President Donald Trump threatened to strike Iran if it did not stop Hezbollah from “causing trouble.”In peacetime, roughly a fifth of global oil and liquefied natural gas shipments passed through the Strait of Hormuz. Its near-total closure by Iran’s Islamic Revolutionary Guard Corps following US and Israeli strikes at the end of February has disrupted regional trade and triggered a global energy shock. In April, the US imposed a blockade on ships in the strait leaving and traveling to Iranian ports, further disrupting traffic through the waterway.Brent crude rose from about $70 before the war to nearly $115 last month.Know more: Pakistani Prime Minister Shehbaz Sharif posted on X, "The discussions were held in a positive and constructive atmosphere and yielded encouraging progress,” adding that the first round of talks had "concluded successfully."US Vice President JD Vance told reporters in Switzerland that Trump had "asked us to turn over a new leaf to transform our relationship with the people of Iran" and said progress had also been made toward ending the conflict in Lebanon."These things are always a little bit messy," Vance added.In an X post on Monday, Iranian Foreign Minister Abbas Aragchi said Tehran had secured waivers for oil and petrochemical exports, the release of some frozen assets and the launch of a reconstruction and development plan for Iran.