Brent crude fell 1.0% to $107.93 per barrel, while WTI dropped 1.5% to $109.88 amid ceasefire reports.
President Donald Trump gave Iran an 8 p.m. ET deadline to reopen the Strait of Hormuz by Tuesday, warning of power outages.
OPEC+ announced eight members will increase output by 206,000 barrels per day in May, though logistical constraints may delay market impact.
Higher oil prices revive inflation worries, potentially pressuring transport, manufacturing and consumer sectors globally if the strait stays closed.