Oil prices fell as Brent crude remains on track for a steep monthly decline.
The U.S. and Iran have reportedly reached a preliminary agreement for a 60-day ceasefire.
The proposed deal includes reopening the Strait of Hormuz to secure global oil shipments.
Global stock markets moved into a risk-on phase following reports of the framework agreement.
The deal currently awaits final approval from the U.S. President and lacks official confirmation.
Analysts suggest that oil production and shipping will recover gradually even if the deal is finalized.