Oil prices have fallen after US President Donald Trump said American and Iranian representatives held what he described as “very good” talks at the United Nations.

Brent crude dropped to 98 dollars and 41 cents per barrel, while US West Texas Intermediate fell to 89 dollars and 23 cents.

Trump said the three-hour meeting was productive and that another meeting between the two sides would take place soon.

The development comes as tensions continue in the Middle East, with Iran keeping the Strait of Hormuz closed and the United States maintaining a blockade of Iranian ports.

Meanwhile, Saudi Arabia has reportedly restarted operations on its East-West Pipeline, a major oil export route that was shut down following drone attacks.

The drop in oil prices also came as markets monitored developments in the US-China trade relationship ahead of a meeting between Trump and Chinese President Xi Jinping.