Kathmandu. International oil prices fell nearly 5 percent on Monday after news that peace talks between the United States and Iran could go ahead.

Markets fell sharply after selling pressure mounted on investors on expectations of easing tensions and easing supply disruptions in the Middle East.

West Texas intermediate crude, which supplies in July, fell $5.35 a barrel to $91.25, a drop of about 5.53 percent. Brent crude futures, the global oil benchmark, fell $5.57 to $97.97 a barrel, down 5.38 percent.

WASHINGTON (AP) — U.S. President Donald Trump said Saturday that peace with Iran was “pretty much done” but that a final deal still remains to be reached between the United States, Iran and other Middle Eastern countries. The proposed plan includes an extension of a 60-day ceasefire, the reopening of the Strait of Hormuz, re-selling oil to Iran and negotiations over Iran’s nuclear program. U.S. Secretary of State Marco Rubio has said the United States is ready to enter into “serious negotiations” over its nuclear program if Iran takes steps to reopen the Strait of Hormuz.

Meanwhile, Iran’s Islamic Revolutionary Guard said 33 ships had crossed the Strait of Hormuz in the past 24 hours, indicating that the route was partially operational. Energy analysts say it is difficult for supplies to return to normal as quickly as they were before the war, as damage to production structures, production disruptions in some areas and shipping problems have not yet been fully resolved. Analysts say the supply-demand imbalance in the oil market is likely to persist and prices remain high for a long time, and a full decline is only possible by 2027.