Oil prices dropped about 5% on Tuesday to a two-week low, on cautious hopes that the pause in fighting ?between the United States and Iran will lead to talks to end the war, even though previous halts have proved only temporary.

Brent futures fell $4.27, or 4.8%, to settle at $84.09 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $3.35, or 4.1%, to settle at $79.26. After dropping about 16% over three days, Brent closed at its lowest since July 13 and WTI at its lowest since July 16.

Iran has denied seeking to resume talks with the US, contradicting statements from US President Donald Trump.

Iran also rejected an Omani plan, backed by Gulf states, to manage the Strait of Hormuz, including collecting voluntary fees for using it, a Gulf source and a Western diplomat said.