Oil prices eased in early trading Sunday, falling further from a two-month high set last week, after the United States and Iran refrained from launching military strikes in the Persian Gulf for a second straight day. The price for a barrel of Brent crude oil to be delivered in September dropped 4.9% to $92.02 shortly after trading resumed. The price for a barrel of benchmark U.S. oil to be delivered in September fell 5.6% to $84.34 on Sunday.

Brent crude, the international standard, briefly hit $102 a barrel last week on fears that increased fighting in the Middle East would further slow the global flow of crude. The ability of tankers to pass safely through the Strait of Hormuz has been the central concern for the oil market since the U.S. and Israel attacked Iran in late February. In the United States, the average price for a gallon of regular gasoline on Sunday was $4.11, up from $3.90 a month ago.

The pullback reduced the war premium that had driven prices higher. Traders now believe inflation pressures have grown enough that they're betting on a 36% chance the Federal Reserve will hike its main interest rate at an upcoming meeting, according to data from CME Group. Long-term U.S. mortgage rates have already hit their highest levels in nearly a year.

The price for a barrel of Brent crude to be delivered in October, which is now the most actively traded part of the market, fell 4.6% to $87.48. While oil prices have given back some of their big July gains, much uncertainty still remains.