Oil prices fell on Friday as Iran announced a new peace proposal to Pakistani mediators, reversing earlier gains.
Brent July futures dropped 1.7% to $108.51/barrel, while WTI June slipped 3.1% to $101.79/barrel.
The market remains wary of a possible Strait of Hormuz closure, which supplies about 20% of global oil.
US President Donald Trump signaled continued naval blockade and military options, while Iran’s Supreme Leader vowed to keep control of the strait.