Fuel Exports In The Middle East Rebound Even Without a U.S.-Iran Deal. Oil Is Dropping Again.

Oil prices are falling on Tuesday following reports that the U.S. and Iran held talks with mediators to potentially revive a process to end the war, as well as data showing that fuel exports in the region have increased.

Brent crude, the international benchmark, dropped 1.41% and stood at $96.45 per barrel at 10:23 a.m. ET, while West Texas Intermediate, the U.S. benchmark, fell 1.31% and clocked in at $91.39 per barrel at the same time.

Washington and Tehran spoke separately with mediators on Monday, Reuters reported. President Donald Trump said during the weekend that he was rejecting Iran's conditions to reopen the Strait of Hormuz, but that both countries would continue negotiating.

"They want to make a deal, but it is not the deal that I want to make. It is what we would have maybe agreed to a year ago. They overplayed their hand," Trump said.

Iranian officials said last week that it would be able to reopen the key waterway within seven days if Washington lifted its "blockade of the country's ports and allowed Tehran to access frozen assets." Conditions also involved a ceasefire across the region.

However, U.S. Ambassador to the UN Mike Waltz told NBC News during the weekend that the proposal was not made in good faith, calling it a "cynical attempt to put something on the table that they knew was unacceptable."

Another report detailed that Trump is willing to offer Iran sanctions relief and unlock frozen Iranian funds as part of a potential agreement, but only if Tehran makes "concrete progress" on its nuclear program.

A U.S. official said the countries are engaged in what the official described as "positive and constructive discussions through the mediators," but Washington has made clear that there will be no final agreement without movement on nuclear issues.

Iranian Foreign Minister Abbas Araghchi said after meeting with Qatari mediators that he "talked about ideas and how to find solutions to fulfil Iran's conditions." "Whenever the Qataris have a response, they know how to get it to us," he added.

Elsewhere, new data showed that crude exports in the Middle East rebounded close to their highest level since the war began in late February. CNBC cited data from Kpler, which noted that "Middle East crude exports at just under 80% of pre-conflict levels."