Khaberni - Oil prices fell on Tuesday, dissipating gains made in the previous session, amid expectations of peace talks between the United States and Iran this week, which would allow more supplies from the Middle East to flow.
Brent crude futures dropped 95 cents, or 1%, to $94.53 by 0003 GMT. Futures for West Texas Intermediate crude for delivery in May fell $1.54, or 1.72%, to $88.07. May futures expire on Tuesday, and the more active June contracts fell $1.09, or 1.3%, to $86.37.
Both crudes rose on Monday, with Brent climbing 5.6% and West Texas Intermediate rising 6.9% after Iran once again closed the Strait of Hormuz, blocking a major oil transit artery, and the United States detained an Iranian cargo ship as part of its blockade of the country's ports.
However, investors are focused on the possibility that this week's talks could extend the current ceasefire or lead to a final agreement, despite the ongoing possibility of renewed conflict and disruption of oil shipments.
A senior Iranian official said on Monday that his country is considering participating in the peace talks in Pakistan, following Islamabad's efforts to end the American blockade.
The blockade poses a significant obstacle to Tehran's return to peace efforts, while the current two-week ceasefire is about to end.
