Oil settles lower on reports of potential Iran nuclear deal

By Laura Sanicola

NEW YORK (Reuters) -Oil settled lower on Tuesday, tumbling from a two-month high after media reports said the United States and Iran have made progress on reviving a deal restricting the OPEC country's nuclear weapons development, which would boost crude supply.

Prices plunged on the reports that Russian ambassador to the United Nations Mikhail Ulyanov said significant progress had been made, but losses stopped after he said on Twitter that negotiators need more time to finalize an agreement.

After falling more than $2 a barrel, Brent crude settled down 75 cents, or 1.1%, at $68.71 a barrel by 1:19 p.m. EDT (1719 GMT). U.S. West Texas Intermediate (WTI) crude settled down 78 cents, or 1.2%, to $65.49.

If the United States lifts sanctions on Iran, the country could boost oil shipments, adding to global supply.