Oil prices gave up their conflict-driven gains as progress in U.S.-Iran peace talks and increased tanker traffic through the Strait of Hormuz eased concerns over supply disruptions.
Prompt-month Brent crude futures for September delivery fell 0.62%, to $73.41 a barrel.
Meanwhile, prompt-month U.S. West Texas Intermediate crude futures for August delivery fell 0.51%, to $69.98 a barrel.
Both contracts hit their lowest levels since before the start of the conflict in Iran.
Three supertankers carrying crude oil passed through the waterway on Tuesday, while seven empty Qatar-linked liquefied natural gas tankers have entered in recent weeks, signaling a gradual recovery in Gulf energy flows, according to Reuters.
Washington and Tehran have signaled early progress in efforts to end the conflict, although negotiations are expected to be lengthy.
Since April, the United Arab Emirates has ramped up oil exports through its Fujairah export route along the Omani coastline, with tankers often switching off their transponders to avoid detection.
The strategy helped lift exports to 4.3 million barrels per day in early June from 1.9 million barrels per day in March, recovering to nearly 85% of pre-war levels, according to International Energy Agency data.
The International Maritime Organization said on Tuesday it will implement an evacuation plan for more than 11,000 seafarers stranded in the region, in coordination with Iran, Oman, other coastal states, the United States, and the maritime industry.
The agency said the necessary safety guarantees have been secured and that navigation conditions have been verified to ensure the safe passage of vessels.
Meanwhile, the Republican-led Senate voted in favor of ending U.S. military involvement in the conflict with Iran, in a rare symbolic rebuke of President Donald Trump.