
Brent crude fell 3.9% to $80.47 a barrel, while West Texas Intermediate crude dropped 4.6% to $76.67 by 11:19 a.m. ET.
Both contracts fell more than 5% earlier, reaching their lowest levels since July 13 as traders reduced geopolitical risk premiums.
Marco Rubio reported progress without a final deal, while Scott Bessent said an agreement could come by Wednesday.
Following the comments, Brent crude price was down 3.9% at $80.47 a barrel.
Shipping traffic remained largely unchanged as vessel attacks and Iranian restrictions continued limiting oil exports through the Strait of Hormuz.
The strait previously carried about 20% of global petroleum consumption, while Aramco estimates the conflict has removed 2.6 billion barrels.
Prime Minister Anthony Albanese is set to allocate $4 million towards a feasibility study for a new oil refinery in Western Australia.
Oil extended its decline after President Donald Trump said the US and Iran were engaged in talks to try to end the Middle East conflict once again. Jorge Leon, Geopolitical Analysis Head at Rystad Energy spoke to Bloomberg's Abeer Abu Omar on Horizons Middle East & Africa about the best & worst-case scenario for oil moving forward.
West Texas Intermediate prices dropped after the United States paused military action against Iran.