Brent fell 1% to $107.93/barrel, WTI dropped 1.5% to $109.88 as ceasefire talks emerged.
President Trump set an 8 p.m. ET deadline for Iran to reopen the Strait of Hormuz by Tuesday, warning of severe disruptions.
OPEC+ announced eight members will increase output by 206,000 barrels per day in May, though logistical constraints may limit immediate impact.
Higher oil prices revive inflation concerns, potentially pressuring transport, manufacturing and consumer sectors globally if the Strait remains closed.