Oil fell more than 4 per cent as talks between Iranian and Qatari officials on a deal to end the US-Israeli war on Iran raised hopes that Middle East supply disruptions could ease, Reuters reports.

Iranian negotiators have left talks with Qatari mediators aimed at ending the war with the United States, and a draft proposal is being circulated with a follow-up meeting possible, an official briefed on the talks said on Monday.

“The new month brought with it renewed hopes of a breakthrough in the Iranian stalemate,” said Tamas Varga of oil broker PVM.

Brent crude futures fell $4.79, or 4.2pc, to $108.64 a barrel by 1020 GMT while US West Texas Intermediate crude traded at $99.71, down $4.41 or 4.2pc.