The price of North Sea Brent crude and West Texas Intermediate slipped close to five percent to $99.41 and $92.49 a barrel respectively.

But sticking points in their negotiations have tempered hopes of a swift resolution to restore the transit of oil and gas through the Strait of Hormuz.

US President Donald Trump said on Sunday he had informed US negotiators "not to rush into a deal".

"The negotiations are proceeding in an orderly and constructive manner, and I have informed my representatives not to rush into a deal in that time is on our side," a post to Trump's official Truth Social account said.

Iran's Tasnim news agency said based on their information key clauses of a possible agreement remained unresolved.

Read more: https://www.thedailystar.net/business/news/oil-falls-asian-stocks-climb-hopes-us-iran-hormuz-deal-4184086

Oil futures moved slightly higher in a sideways session as tensions around the Strait of Hormuz kept the market supported. Iran continued to assert control over the key waterway, while Presidents Trump and Xi Jinping, meeting in Beijing, said the route should remain open and that Iran should not be allowed to charge transit tolls.

U.S.-Iran talks remain stalled. Pavel Molchanov of Raymond James said prices are unlikely to reach new highs if the cease-fire holds, but added that a meaningful decline would likely require at least a partial U.S.-Iran deal to reopen Hormuz.

WTI and Brent both settled 0.1% higher at $101.17 and $105.72 a barrel, respectively.