Brent crude prices fell to around USD 91 a barrel on Tuesday, extending losses after declining nearly 6 percent in the previous session to their lowest level since August, as US President Donald Trump signalled that further military strikes on Iran may not be necessary.
Trump's remarks indicated a possible easing of the conflict, following the US midterm election results.
The decline in crude oil prices provided some relief to financial markets by easing inflationary pressures.
"The sharp drop in oil prices has given markets some much-needed breathing room. It's eased some of the inflation pressure," Dilin Wu, a strategist at Pepperstone Group, told Bloomberg.
Meanwhile, futures for the S&P 500 index rose 0.2 percent on Tuesday, while those for the Nasdaq 100 were little changed. European stock futures gained 0.9 percent.