Oil prices have ticked downward as Tehran and Muscat trade proposals for an agreement governing the management of the Strait of Hormuz, Reuters reports.

Brent futures have fallen $1.42, or 1.56 per cent, at $89.32 a barrel just before 1330 GMT (6:30pm PKT) after hitting a high of $93.31.

US West Texas Intermediate crude futures have lost $1.14, or 1.35pc, at $83.32, after reaching a 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,” says Hamad Hussain, a climate and commodities economist at Capital Economics.