Oil prices fell at Monday's open after US President Donald Trump said he was highly unlikely to order fresh attacks on Iran as long as talks to end the conflict progress, even as both countries reported that shipping had been hit in or near the Strait of Hormuz.
Brent was down 64 cents, or 0.64%, to $97.67 a barrel by 1134 GMT while West Texas Intermediate (WTI) fell 35 cents, or 0.40%, to $90.51 a barrel.
Brent briefly fell over $1 a barrel.
"It depends on whether or not they sign a very strong agreement," Trump told CNN in a phone interview. "The answer is, highly unlikely it's going to be necessary."
Trump had hinted at renewing major attacks on Iran after last week's US midterm elections, but there has been no sign of a large-scale US military operation. Iran has said it would respond by striking US and Israeli targets.
Source: Reuters
-Agencies
