Oil prices fell about 5 percent in early trading on Monday after US President Donald Trump and Iranian officials said peace talks were progressing. The decline came amid talk of easing tensions in West Asia and easing supply disruptions. 

West Texas Intermediate crude was trading at $91.25 at one point on Monday, down about 5.53 percent. Similarly, Brent crude was trading at $97.97 a barrel at one point, down 5.38 percent. 

On Sunday, US President Donald Trump said on Saturday that a peace deal with Iran was largely complete and that only a final deal was left to be reached. He said the US, Iran and other Middle Eastern countries would continue to discuss the matter. 

The proposed plan includes extending the 60-day ceasefire, reopening the Strait of Hormuz, allowing Iran to sell oil again and negotiating Iran's nuclear program. 

US Secretary of State Marco Rubio has said the US is ready to enter into serious talks on its nuclear program if Iran takes steps to reopen the Strait of Hormuz.

Meanwhile, Iran's Islamic Revolutionary Guard Corps reported that 33 ships had passed through the Strait of Hormuz in the past 24 hours, indicating that the route is partially operational.

Energy analysts say it is difficult to return to pre-war supply levels quickly, as damage to production infrastructure, production disruptions in some areas and transportation problems have not yet been fully resolved.