Oil prices fell in early Asian trade Tuesday amid optimism over a potential reopening of the Strait of Hormuz, a critical chokepoint for global energy supplies. Oman and Iran announced their foreign ministers discussed an agreement to reopen the waterway under a temporary framework. In a joint statement following talks in Tehran, the two nations said a proposed framework would establish a temporary shipping route through the strait. "The objective would be to gradually restore part of the maritime traffic while negotiations continue toward a more permanent solution," said Antonio Di Giacomo, senior market analyst at XS.com.

Front-month WTI crude oil futures slipped 0.5% to $81.82 per barrel.