Oil Prices Fall as US-Iran Peace Talks Ease Supply Fears

Global oil prices have dropped sharply on Tuesday after renewed peace talks between the United States and Iran eased concerns over prolonged supply disruptions in the Middle East.

According to Oilprice.com brent crude fell below $84 per barrel from around $87 on Monday, while US benchmark West Texas Intermediate dropped to about $79 per barrel.

The renewed diplomatic efforts reduced fears that the Strait of Hormuz, a key global oil shipping route carrying about one-fifth of the world's crude, would remain closed for an extended period.

Oil prices had surged above $100 per barrel last week following US strikes on Iran and the ensuing conflict, which disrupted shipping in the Gulf and forced the closure of the strategic waterway.