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The US says attacks on Iran have been halted to give "talks some space", raising hopes of a resolution to the conflict.
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Oil prices fell after Iran reportedly said it would suspend attacks as long as a U.S. pause in hostilities remains in place.
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Oil prices tumbled on Monday as the United States and Iran paused their escalating strikes to make "space" for diplomacy.
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President Trump put off plans to escalate the fighting in part because of dwindling stockpiles of interceptor missiles, American officials said.
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Neither the US nor Iran have launched attacks in the last two nights, after almost two weeks of tit-for-tat strikes risked derailing talks to permanently end the war.
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The United States paused attacks on Iran for a second straight day Sunday and Tehran said it had done so too, as efforts continued to bring the countries back to negotiations on an interim ceasefire.
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The U.S. paused its attacks on Iran for a second straight day on Sunday, and Tehran said it had done so, too, as efforts continued to bring the countries back to negotiations on an interim ceasefire deal largely undermined by recent exchanges of fire.
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The pause comes amid efforts to resume negotiations on an interim ceasefire deal. The U.S. previously targeted Iranian coastal areas after Iran fired at ships in the Strait of Hormuz.
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