To update prices and add details

HOUSTON, June 22 (Reuters) - Oil prices fell 4 percent on Monday after U.S. Vice President J.D. Vance said progress had been made in talks with Iran and that the Strait of Hormuz was open.

Brent crude fell $ 3.18 , or 3.95 percent, to $ 77.39 a barrel by 3:44 p.m. GMT. Prices had risen to $82.30 earlier in the session due to threats from U.S. President Donald Trump to resume war with Iran and Tehran's announcement that it would close the Strait of Hormuz again.

U.S. West Texas Intermediate crude futures fell $2.15 to $ 74.45 a barrel before the contract expired later in the day. The more actively traded August contract dropped $ 2.49 , or 3.28 percent, to $ 73.36 a barrel.

Mediators said senior officials from the United States and Iran concluded the first round of talks in Switzerland on Monday. The negotiations began on Sunday under a memorandum of understanding reached last week, which stipulates extending the fragile ceasefire, in place since April, for at least another 60 days.

The United States authorized the sale of Iranian oil today. The general license, announced by the Treasury Department, permits the sale of crude oil, petrochemicals, and petroleum products of Iranian origin until August 21.

Iranian Foreign Ministry spokesman Ismail Baghaei told the Islamic Republic News Agency on Monday that Tehran did not discuss its nuclear program and did not accept any new commitments during talks with the United States in Switzerland on Sunday.

UBS analyst Giovanni Staunovo said Iran has resumed its oil exports after they were halted earlier this month due to the US naval blockade, adding that "pumping these barrels into the market represents additional supply."

Ship tracking data showed that two crude oil tankers carrying about two million barrels of crude passed through the Strait of Hormuz today, an indication of improved shipping traffic after it declined yesterday, Sunday, due to concerns about passage through the waterway.

The UAE, Kuwait and Iraq offered more oil to customers last week.

Iraq intends to gradually restore its crude oil production to between 4.2 million and 4.3 million barrels per day, Oil Ministry Undersecretary for Extraction Affairs Nasir Aziz said in a statement on Sunday.

ANZ predicted a recovery of around two to three million barrels per day during the first four weeks.

She added that the recovery of supplies will remain difficult, as the resumption of between 2 million and 3.5 million barrels per day during the third quarter of 2026 remains contingent on the stability of conditions, while markets may lose between 1 million and 2 million barrels per day permanently or semi-permanently.

Lebanon’s National News Agency reported that Israeli attacks killed at least 20 people on Saturday, one day after a ceasefire agreement with Hezbollah went into effect.