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Oil prices fell further on Tuesday on renewed hopes that hostilities between the U.S. and Iran could end. Mario Tama/Getty Images

Oil prices fell further on Tuesday, dropping below a key threshold after President Donald Trump said a resumption of full-fledged hostilities is "quite unlikely."

Brent crude, the international benchmark, fell more than 2.5% and dropped below $90 a barrel at 8:28 a.m. ET, while West Texas Intermediate, the U.S. benchmark, plunged 2.30% and stood at $84.85 per barrel at the same time.

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Trump said in a social media post on Monday night that he had an "excellent" conversation with Qatari Prime Minister Mohammed bin Abdulrahman bin Jassim Al Thani about the course of the war.

"Qatar, Saudi Arabia, UAE, Bahrain, Kuwait, and others, would prefer the status quo, in other words, a continuation of the Greatest Naval Blockade in History, and the new Operation Iron Gate — Therefore, Land and Sea," Trump said in a passage of the post, in reference to a decision to also block Iranian exports through land, not only sea.

Trump said, the U.S. remains "locked and loaded" to resume strikes but "at this point, however, that seems to be quite unlikely."

"Israel, and the entire Middle East, are protected from Iranian danger and threats. We are seeing positive momentum toward an end to this Conflict, and will ensure that America's interests are at all times protected. At the conclusion of this Military Engagement, the American People, and the World, will be far safer and more secure," Trump concluded.

Israeli outlet Israel Hayom claimed on Monday that Al Thani would be presenting an Iran-approved proposal that would include lifting the U.S. naval and economic blockade in exchange for the reopening of the Hormuz Strait. That would mean Iran dropping its demand to control the waterway and charge tolls for passage. The outlet went on to note that $8 billion in Iranian funds held in Qatar would be unfrozen.

Iranian Foreign Minister Abbas Araghchi urged the U.S. to accept Tehran's latest offer, threatening with escalation if Washington doesn't.

"American voters have made their choice. Time for the White House to make its own. Our 2-day proposal stands: meet the requirements, including end to war on all fronts, and you will see results. Or choose war, and see our alert and battle-hardened Warriors rain down hell," Araghchi wrote on X on Sunday.

At the same time, Secretary of State Marco Rubiocast doubt on an agreement, saying some of the country's demands are "outrageous and ridiculous."

Speaking to press in Florida, Rubio then noted that President Donald Trump would prefer to solve "this and every problem diplomatically." However, he added, "sometimes that's not possible."