Oil prices fell on Tuesday, floating just above $110 a barrel, after U.S. President Donald Trump said he had postponed a planned attack on Iran amid ongoing negotiations with the country. 

Brent oil futures for July. the global oil benchmark, dropped by 1.5% to $110.38 a barrel, while U.S. West Texas Intermediate crude futures dipped 1.1% to $103.27 a barrel by 05:37 ET (09:37 GMT). 

Crude slid largely after Trump said he was postponing a planned military attack on Iran that had been initially planned for Tuesday. The president noted in a social media post that he had been asked to stand down by the leaders of three Gulf countries. 

Trump claimed that “serious negotiations are now taking place,” adding that, “in the opinion” of the Gulf authorities, a “Deal will be made, which will be very acceptable to the United States of America, as well as all Countries in the Middle East, and beyond.”

He added that the agreement will include “NO NUCLEAR WEAPONS FOR IRAN!” — although he flagged that he had ordered the U.S. military to remain prepared to launch a “full, large scale assault on Iran, on a moment’s notice” if an accord is not reached.

Iran, meanwhile, has sent a peace proposal to the U.S. which would stop hostilities in all fronts their conflict, including in Lebanon, and seek reparations for damage caused by the conflict, according to reports in state media. Tehran’s plan also calls for U.S. forces to exit areas close to Iran, as well as the removal of sanctions, the unfreezing of funds, and the end to an American blockade of Iranian ports, the IRNA news agency said.

Citing a Pakistani source, Reuters reported that Islamabad had shared Iran’s proposal with the United States. Pakistan has been a frequent intermediary between both sides since the start of the conflict in late February.

Notably, Iran’s latest offer does not appear to be substantially different from prior terms that U.S. President Donald Trump described as “garbage” last week, Reuters added.

“Developments in the Middle East continue to dictate oil price action, with the market remaining sensitive to any Iran-related headlines,” analysts at ING said in a note to clients.

Despite the decline, oil prices remain well above pre-war levels of around $70 a barrel. Crucially, the Strait of Hormuz, a vital waterway off of Iran’s southern coast, remains effectively closed, disrupting roughly 20% of the world’s crude supply.