Abbas Araghchi
Iranian Foreign Minister Abbas Araghchi held talks with Omani and Saudi counterparts about the future of navigation through the Strait of Hormuz.

Oil prices fell on Tuesday as talks between the U.S. and Iran continue. Other reports have detailed separate conversations among gulf countries about management of the Strait of Hormuz, adding to the downward pressure.

Brent crude, the international benchmark, fell 2.12% and clocked in at $84.05 per barrel at 8:44 a.m. ET, while West Texas Intermediate, the U.S. benchmark, dropped 1.71% and stood at $81.20 at the same time.

Iranian Foreign Minister Abbas Araghchi held talks with Omani and Saudi counterparts about the future of navigation through the Strait of Hormuz.

Tehran's ministry said the calls "emphasized the need to strengthen cooperation and advance joint diplomatic efforts to establish stability in the region and eliminate the insecurity imposed on the Strait of Hormuz caused by the aggressive actions of the United States."

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Another report detailed that Gulf states have backed a proposal that would allow Iran to charge fees to vessels going through the Strait of Hormuz if the payments are made voluntarily.

Oman, which controls the opposite shore of the strait, has won the backing of other Gulf states for the plan as negotiations between the countries appear to continue.

The proposal would be similar to that in place at the Strait of Malacca, where Indonesia, Malaysia and Singapore ask ships to give voluntary donations for, among other things, environmental protection and search-and-rescue operation.

Hostilities around the waterway have ceased since last Friday after President Donald Trump decided to halt them to give diplomacy a chance. However, he also warned of "very strong military action" against Iran if talks between the countries are unfruitful.

Speaking to Axios on Monday, Trump said the U.S. is in "very deep talks" with Tehran but promised to escalate significantly if they don't yield results soon.

Asked how long he will give for diplomacy, he replied: "Not much time. Either it goes fast or not at all." Later on Monday he said: "You can't bribe them. You've got to beat them, and we'll beat the hell out of them. But we'll see how it turns out. Right now, there are very friendly negotiations going on."

However, Iranian Foreign Ministry spokesperson Esmaeil Baghaei said on Monday that Iran is not seeking more talks with the U.S.