2340 GMT — Oil falls in early Asian trade amid prospects for reopening of the Strait of Hormuz, a key waterway through which one-fifth of the world's oil is transported.

Iran appears to be "nearing an understanding with Oman over the Strait of Hormuz," Tickmill's Joseph Dahrieh says in an email. Also, "President Trump refrained from ordering another round of military operations in the Middle East, reinforcing hopes for a diplomatic resolution," the managing director notes.

However, "Iran refuted the existence of talks with the U.S., which could still limit the extent of the pullback in prices," Dahrieh adds. Front-month WTI crude oil futures are down 0.6% at $79.88 a barrel.