Oil prices fell more than 10% on Monday as hopes for a diplomatic breakthrough between the United States and Iran reduced the geopolitical risk premium in crude markets.

The international benchmark Brent crude was trading at around $88.06 per barrel as of 1845 GMT, down 10.4% from the previous close of $91.68, The Caspian Post reports, citing Anadolu Agency.

The US benchmark West Texas Intermediate (WTI) also declined, falling 8% to $82.35 per barrel.

Brent briefly surged to $100 per barrel last week amid concerns that disruptions to shipping through the Strait of Hormuz and the Bab el-Mandeb Strait could limit Middle Eastern crude exports.

Prices began to decline after US President Donald Trump paused military strikes on Iran on Friday following nearly two weeks of hostilities.

On Monday, Trump said Washington was engaged in “good talks” with Tehran and that a deal was possible, while warning that military action could resume if negotiations failed.

Iran said it had suspended retaliatory military operations and entered discussions with Oman regarding navigation through the strait.

Supply concerns also eased after crude shipments resumed at the Caspian Pipeline Consortium terminal on Russia’s Black Sea coast, a key export route for Kazakh oil.

However, markets remained cautious after the Houthis claimed attacks on Saudi Aramco-linked facilities in Jizan and Yanbu. Neither the Saudi government nor Saudi Aramco confirmed the claims.