Singapore: Oil prices fell on Tuesday, reversing gains in the previous session, on expectations peace talks between the US and Iran will take place this week and allow more supply to flow from the key Middle East producing region. Brent crude futures declined 54 cents, or 0.6%, at $94.94a barrelat0300 GMT. US West Texas Intermediate (WTI) for May fell $1.11, or 1.2%, to $88.50. The ⁠May contract expires on Tuesday and the more-active June contract was down 76 cents, or 0.9%, at $86.66.

Both benchmarks surged on Monday, with Brent up 5.6% and WTI up 6.9%, after Iran again shut the Strait of Hormuz, closing the key oil transport artery, and the US seized an Iranian cargo ship as part ‌of its blockade of the country's ports.

Still, investors are focusing on the likelihood talks this week will result in the extension of the existing ceasefire or a final agreement, though the chance of further conflict and disruptions to ‌oil flows remains. "While energy markets popped higher yesterday following Iran's decision to reverse its ‌opening of the Strait of Hormuz, they're still trading in a manner which suggests optimism over ‌US-Iran talks," said ING analysts in a note.

"But ‌we believe markets are underpricing the ongoing supply disruption. Optimism appears to be clouding the reality of the supply shock." Iran is weighing participation in peace talks in Pakistan, a senior ‌Iranian official told Reuters on Monday, following Islamabad's efforts to end the US blockade.

Vance to travel to Pakistan: Axios reports

US ⁠Vice President ‌JD Vance ‌will travel to ‌Pakistan ‌on ‌Tuesday for ‌Iran talks, ⁠Axios reported Monday ⁠citing ⁠US ⁠sources.

Oil falls on expectations US-Iran talks likely to proceed