Oil prices fell below $100 per barrel on Tuesday despite rising tensions after the U.S. military began enforcing a blockade on Iranian ports, increasing uncertainty around a critical global shipping route.

However, signs of ongoing diplomatic engagement helped ease market concerns over supply disruptions.

The decline follows the collapse of talks between Washington and Tehran in Islamabad earlier this week, although a U.S. official said communication with Iran continues, with “progress” being made toward a potential agreement.

Pakistan’s Prime Minister Shehbaz Sharif also confirmed that efforts are ongoing to contain the crisis and bring an end to the conflict.

Meanwhile, U.S. President Donald Trump said Iran had reached out expressing willingness to negotiate, but stressed that any agreement would not allow Tehran to acquire nuclear weapons.

“Iran will not have a nuclear weapon… we cannot allow any country to blackmail or exploit the world,” Trump told reporters at the White House.