Oil prices extend losses as Brent crude falls to $86.89

Oil prices continued their decline on Tuesday, falling by more than $1 per barrel amid hopes for a resolution to the conflict between the United States and Iran.

Brent crude futures dropped $1.47, or 1.66 percent, to $86.89 a barrel, marking their lowest level since July 20. US West Texas Intermediate crude settled at $81.16 per barrel, down $1.45 or 1.76 percent, also the lowest since July 20.

Earlier, both contracts had fallen by around 8 percent in the previous session after the United States abruptly paused its airstrike campaign against Iran at the start of the week.

According to Reuters, Tony Sycamore, an analyst at IG, said in a note to clients: "For now, relief over a possible exit has calmed prices and eased concerns about Houthi attacks on Saudi infrastructure. However, the situation remains highly volatile."