Oil prices moved lower as Iran and Oman exchanged proposals for an agreement on the management of the Strait of Hormuz.

Brent crude futures dropped by $1.42, or 1.56%, to $89.32 per barrel shortly before 13:30 GMT, after earlier climbing to an intraday high of $93.31, The Caspian Post reports, citing Al Jazeera.

Meanwhile, US West Texas Intermediate (WTI) crude futures fell by $1.14, or 1.35%, to $83.32 per barrel, having previously reached a session high of $85.94.

"The fact that Oman is in talks with Iran could suggest that progress is being made on re-opening the Strait of Hormuz," said Hamad Hussain, a climate and commodities economist at Capital Economics.