On Thursday morning, oil prices dropped to approximately $94, while Asian stocks rose due to growing optimism about a potential deal to end the Iran conflict and strong corporate earnings that boosted markets across the region.

Brent ‌crude opened 0.4 per cent lower at $94.55 a barrel after reports that Iran could consider allowing ships to sail freely through the Omani side of the Strait of Hormuz without risk of attack as part of proposals offered in negotiations with the United States, The Caspian Post reports, citing foreign media.

It rose 0.3 per cent later to $95.23 a barrel as a major oil refinery fire in Australia raised supply concerns.

US West Texas Intermediate (WTI) crude futures were down 70 cents, or 0.8 per cent, at $90.59 a barrel.

Toshitaka Tazawa, an analyst at Fujitomi Securities, cautioned that while there were “hopes for de-escalation, many investors remain sceptical, given that US-Iran talks have repeatedly broken down even after appearing to make progress.”

"Until a peace deal is reached and free navigation through the strait is restored, WTI prices are expected to continue fluctuating between $80 and $100," he told Reuters.