Accra:Brent crude fell approximately 3% to about $106 per barrel, reversing earlier gains after nearing $112 earlier in the session. The international oil benchmark was trading at $106.18 per barrel, down $3.37, or 3.07%, from the previous close by 1440 GMT.

According to Anadolu Agency, the decline placed Brent nearly $6 below its intraday high, marking a significant reversal in prices. The pullback occurred as markets monitored reports of diplomatic efforts involving the US and Iran, with Qatar and Pakistan reportedly presenting a compromise proposal. This proposal allegedly received preliminary approval from Washington and Tehran and included confidential International Atomic Energy Agency inspections of Iranian nuclear sites, although this could not be independently verified.

Despite the retreat on Tuesday, Brent crude remained approximately 6.8% higher over the past month and nearly 75% above its level a year earlier. Meanwhile, European natural gas prices also fell 3% to £85.30 ($95.80) per megawatt-hour, retreating from their highest level since December 2022 amid hopes for a diplomatic resolution to the conflict involving Iran.

Concerns persisted over Europe's ability to replenish gas storage before winter, as restricted LNG shipments from the Gulf continued. European gas inventories were at 74.47% capacity as of Monday, remaining below typical levels for this time of year.