Brent fell to around $88 per barrel on Tuesday, marking a third consecutive session of losses after President Donald Trump said the US was engaged in "good talks" with Iran aimed at ending the Middle East conflict, fueling optimism that normal oil flows from the region could resume.
Trump reportedly said he chose to suspend strikes on Iran to give negotiations another chance.
The US quietly halted attacks on the Islamic Republic late Friday following nearly two weeks of fighting, while Tehran also ceased retaliatory strikes against US bases in neighboring countries.
Meanwhile, Iranian and Omani negotiators met over the weekend in an effort to secure an agreement to restore shipping through the strategically important Strait of Hormuz.
Elsewhere, supply conditions also improved as crude exports resumed at the Caspian Pipeline Consortium terminal on Russia's Black Sea coast, a major outlet for Kazakh oil that had recently been disrupted by Ukrainian drone attacks.