Oil prices fell nearly 4% on Monday, as supply concerns eased after US Vice President JD Vance said progress has been made in talks with Iran and the Strait of Hormuz was open.

Brent crude was down $3.11 or 3.86%, at $77.46 a barrel by 1757 GMT. In early trading, prices had climbed to $82.30 because of threats from US President Donald Trump to restart the war on Iran, and Tehran’s announcement that it had again closed the strait.

The US authorised Iranian oil sales on Monday. The general license, announced by the Treasury Department, allows the sale of crude oil and petrochemical and petroleum products of Iranian origin through August 21.