Oil prices declined in volatile trading on Monday as investors looked for clearer signals from ongoing United States Iran discussions and weighed concerns over prolonged supply disruptions linked to shipping issues.

Brent crude futures slipped 64 cents, or 0.6 per cent, to $108.39 a barrel as of 1109 GMT.

Meanwhile, U.S. West Texas Intermediate crude fell $1.33, or 1.2 per cent, to $110.21 per barrel.

Trading in Asia was largely tempered by the sharp gains recorded in the previous session, when WTI jumped 11 per cent and Brent climbed 8 per cent — their biggest single-day increases since 2020.

The United States and Iran were presented with a framework plan aimed at ending their conflict, but Tehran refused to immediately reopen the Strait of Hormuz after President Donald Trump warned he would rain “hell” on Iran if no deal was reached by the end of Tuesday.

Iran said it has drawn up its positions and demands in response to recent ceasefire proposals delivered through intermediaries.

The Strait of Hormuz — a vital route for oil and petroleum exports from Iraq, Saudi Arabia, Qatar, Kuwait and the United Arab Emirates — remains largely shut following Iranian attacks on shipping after the war erupted on 28 February.

However, shipping data show that some vessels have transited the waterway since Thursday, including an Omani-operated tanker, a French-owned container ship and a Japanese-owned gas carrier, underscoring Iran’s approach of permitting passage to ships from countries it regards as more friendly.