Global crude oil prices fell slightly after Iran announced that diplomatic communication with the United States was continuing through mediators, despite renewed conflict in the Middle East. Earlier, Brent crude for September delivery had surged nearly 4 percent overnight to 91.42 dollars per barrel, the highest in a month, before easing to around 90.20 dollars.

Since early July, the benchmark oil price has risen about 30 percent. According to SPI Asset Management analyst Stephen Innes, the market is reacting to two opposing forces: geopolitical risks driving prices higher and signs of easing inflation and a cooling labor market in the United States suggesting that the energy shock may not trigger a new inflationary cycle.

Over the past week, reciprocal attacks between Washington and Tehran had pushed crude prices up sharply, raising concerns about long-term disruptions to shipping through the Strait of Hormuz, which previously carried about one-fifth of global oil supply before the conflict.