Oil prices extended losses on Tuesday, dropping more than $1 per barrel as hopes of a diplomatic breakthrough between the United States and Iran eased concerns over disruptions to global energy supplies.

Oil prices dropped after the US and Iran avoided fresh strikes. Brent fell below $93 as supply fears eased, though Middle East tensions continue to cloud the outlook.

Oil prices tumbled sharply on Monday after the United States and Iran held back from launching fresh strikes over the weekend, raising hopes that diplomacy could ease tensions in…