Oil prices fell Tuesday as renewed diplomatic efforts to end the U.S.-Iran war raise hopes of a de-escalation in the wider regional conflict that has seen Tehran-backed Houthis target Saudi Arabia.
Futures for international benchmark Brent crude for December delivery slipped 0.87% to $114.80 a barrel. U.S. West Texas Intermediate futures for June declined 0.86% to $100.88 per barrel.
The pullback followed talks between Saudi Arabia, Turkey, Pakistan and Iranian officials in Tehran on Monday, as they stepped up efforts to defuse tensions across the Middle East.
Riyadh said the discussions were aimed at keeping diplomatic channels open and preventing another escalation in hostilities. The four countries agreed to continue to engage to advance regional peace and security, according to Iranian state media.
The diplomatic push comes as U.S. President Donald Trump said in an interview with Fox News on Sunday that he was approaching a decision on whether to strike a deal with Iran or intensify military operations, suggesting that additional attacks remained an option.
Representatives from Qatar, which has helped mediate negotiations between Washington and Tehran, also traveled to the Iranian capital on Sunday, Reuters reported .
Prospects of a diplomatic breakthrough have helped temper fears of further disruptions to global energy supplies, putting downward pressure on crude prices.
Still, losses remained limited as the prospect of a lasting resolution appeared fragile, with Iran-backed Houthi militants continuing their attacks on Saudi Arabia over the weekend.
—CNBC's Justina Lee contributed to the report.
