By Mike Murphy and Isabel Wang
Brent crude makes a sharp U-turn - falling below $87 a barrel, after rising above $91 earlier
Oil prices took a dive into the red on Monday, reversing an earlier sharp rally, after a report of a 10-day cease-fire proposal between the U.S. and Iran sparked a sharp decline in energy prices despite a fresh barrage of strikes in the Middle East over the weekend.
Prices had rallied to fresh one-month highs in early-morning action, as fighting between the U.S. and Iran further disrupted the recovery in crude supplies that many had anticipated when the two sides agreed to a memorandum of understanding last month.
After paring gains, oil prices continued to move lower after Reuters, citing an Iranian source, reported on a cease-fire proposal that offered 10 days with no strikes in an effort to revive an interim peace deal.
