Oil prices fell on Tuesday ahead of the resumption of indirect nuclear talks between the U.S. and Iran that could lead to the resumption of crude oil exports from the Persian Gulf nation, while tensions over Ukraine eased. 

By 9:15 a.m. ET (2:15 p.m. GMT), U.S. crude futures were trading down 1.3 percent to $90.16 a barrel, while the Brent crude contract fell 1.4 percent to $91.38, down from Monday’s seven-year high.

U.S. RBOB gasoline futures fell 1.5 percent to $2.6445 a gallon.

Talks to reopen the 2015 Iran nuclear deal in Vienna are set to resume later Tuesday amid growing optimism that the two sides can reach an agreement that would likely lead to the lifting of sanctions on Iranian oil exports.

A deal could bring more than 1 million barrels a day of Iranian crude back to the market, representing more than 1% of global supplies.

Adding to the reasons why the market gave up some recent gains was the hope that diplomacy could prevent Russia from invading Ukraine. Russian President Vladimir Putin made encouraging statements after talks Monday with French President Emmanuel Macron in the Kremlin, saying some of Macron’s ideas could form the basis for further joint steps.

U.S. President Joe Biden has previously warned that if Russia invades Ukraine, there will be no Nord Stream 2, a project developed by Gazprom to double the amount of gas flowing from Russia directly to Germany, bypassing traditional transit countries Ukraine and Poland and seen as a major source of revenue for Moscow.

Nevertheless, apart from geopolitical tensions, market fundamentals appear strong as global demand continues to recover from the pandemic and supply remains very tight.

In addition, China could strengthen if it starts to replenish its crude oil reserves, even at $90 a barrel.

“I think it’s fair to say that China is at the minimum operating level in terms of the prescribed level of mandatory shareholding that state-owned enterprises have to hold,” Mike Mueller, head of Vitol Asia, said in Gulf Intelligence’s daily video on energy markets. . “All eyes are on what happens in China after the Chinese New Year because there is a sense that some restocking will be required.”

Later in the session, attention will turn to the first of two supply reports this week from the American Petroleum Institute , as usual, at 4:30 p.m. ET, while the U.S. will also release its next short-term energy outlook.

In corporate news, BP reported its highest profit in nearly a decade, helped by exorbitant oil and gas prices. The British energy giant also pledged to buy back $1.5 billion more shares using surplus cash in 2021.