Oil prices have fallen below $100 after Iran made an "offer for the Strait of Hormuz."
The move follows a report by Kyodo news agency that Iran has offered to reopen the Strait of Hormuz within seven days if the United States takes initial steps to ease military pressure.
"There is a possibility of moving towards an agreement," a senior Iranian government official told Kyodo.
But the official added that Washington must show "seriousness and commitment" if diplomacy is to progress.