Global oil prices declined following reports of possible second-round peace talks between the United States and Iran in Islamabad. The news brought renewed optimism to investors and a slight rebound in Asian stock markets on Tuesday. Brent crude fell by 54 cents, or 0.6 percent, to 94.94 dollars per barrel, while US West Texas Intermediate (WTI) for May delivery dropped by 1.11 dollars, or 1.2 percent, to 88.50 dollars per barrel.

The decline followed a sharp rise of nearly 6 percent in oil prices on Monday, when uncertainty over the talks had unsettled markets. The long-running conflict between Iran and the United States has disrupted global energy supplies and raised fears of a potential global recession. The renewed prospect of dialogue between the two nations has eased some of those concerns.

Analysts noted that expectations of progress in the Islamabad discussions could help stabilize energy markets if negotiations proceed as anticipated.