Oil prices have dipped in early Asian trade as hopes of further peace talks between the US and Iran eased concerns about the war’s escalation.
The price of global benchmark Brent crude fell by 2.2% to $97.20 (£71.93) a barrel, while US-traded oil dropped by 2.2% to around $96.90.
Donald Trump said on Monday that Washington had “been called by the other side”, adding that Iran would like to make a deal “very badly”.
Oil had jumped above $100 on Monday following Trump’s order to block Iranian shipments after weekend negotiations failed.
Asian stock markets also edged higher. The Nikkei 225 index in Japan gained by 2.4% while South Korea’s Kospi exchange jumped by more than 3%.
Meanwhile, Australia’s Qantas Airways said on Tuesday that it has raised its outlook for energy costs after jet fuel prices more than doubled since the Iran war started.
The carrier estimated its fuel bill for the second half of its financial year to be between A$3.1bn (£1.63bn; $2.2bn) and A$3.3bn, up from its earlier forecast.
Qantas has lifted fares and shifted flights to routes with heavy demand like to destinations in Europe, while cutting back on some domestic trips.
Airlines have been especially hard hit by the Iran war’s oil crunch as energy costs typically account for at least a quarter of expenses.
Ticket prices of carriers across the board have risen since the war.
