On Tuesday, oil prices fell as diplomatic efforts to end the US-Iran war heated up again, leading the market to hope that broader regional conflicts would cool down. Previously, this conflict had seen Houthi forces supported by Tehran attack Saudi Arabia.

International benchmark Brent crude oil for December delivery fell by 0.87% to $114.80 per barrel. US West Texas Intermediate (WTI) crude oil for June delivery fell by 0.86% to $100.88 per barrel.

Previously, officials from Saudi Arabia, Turkey, Pakistan, and Iran held talks in Tehran on Monday to promote the easing of tensions across the Middle East.

Saudi officials stated that these discussions are aimed at maintaining open diplomatic channels and preventing further escalation of hostilities. According to Iranian state media reports, the four countries agreed to continue their contacts in order to promote regional peace and security.

During this diplomatic push, U.S. President Donald Trump stated in an interview with Fox News on Sunday that he is close to making a decision regarding reaching an agreement with Iran or intensifying military actions, which means that further attacks are still an option.

Reuters reported that Qatari representatives who helped mediate negotiations between Washington and Tehran also arrived in the Iranian capital on Sunday.

The prospects for diplomatic breakthroughs help to alleviate market concerns about further disruptions in global energy supply, putting downward pressure on crude oil prices.

However, as the prospects for implementing a lasting solution remain fragile, and the Houthi forces supported by Iran continued to attack Saudi Arabia over the weekend, the decline in oil prices remained limited.

Justina Lee of CNBC has contributed to this report.