Crude prices fell after the US said it is temporarily lifting sanctions on Iran to allow it to export oil and optimism on talks towards a final peace deal, AFP reports.

Internationally, the main focus remained firmly on the Middle East and the prospects for a reopening of the Strait of Hormuz to tanker and cargo traffic.

“The latest developments out of the Middle East have turned more constructive,” said Deutsche Bank analyst Jim Reid, adding that a pickup in oil flows through the Strait of Hormuz was “helping to calm markets”.