US crude CLc1 had fallen to a session low of $73.07 per barrel but climbed back up to settle at $74.29, just 5 cents lower.
However, the Trump administration this weekend announced it is considering waivers on sanctions for countries that are merely reducing their imports of Iranian oil.
The US administration is "in the midst of an internal process" of considering significant reduction exemptions, Reuters reported quoting an unnamed government official.
Oil has been supported by concern that the Iranian export loss will leave a thinner margin of unused production capacity to deal with supply shocks.
India will buy nine million barrels of Iranian oil in November, in a signal the world's third-biggest oil importer will continue purchasing crude from the Islamic republic despite USA sanctions coming into force on November 4.
India's oil and natural gas minister, Dharmendra Pradhan, confirmed Monday that two Indian oil companies would be buying Iranian crude in November.
Olivier Jakob of Petromatrix said: "One way or another, it looks as though India is going to take some Iranian crude".
The comments followed news that India, Iran's No. 2 oil customer after China, will buy 9 million barrels of Iranian oil in November.
In the previous round of sanctions from 2012 to 2015, India continued to buy Iranian crude although it had to cut purchases significantly to protect its wider exposure to the US financial system.
"Obviously, all countries in the Persian Gulf region want to sell their oil, and the world is in need of this region's oil and other energy resources", the top Iranian diplomat said.
"Likely, India and Iran will agree to use Rupee payments instead of United States dollar payments, something already tried between 2013 and 2015, with Iran then using Rupees to import food, medicines and other commodities from India", said Leszczynski.
On Monday, Iran's Oil Minister Bijan Zanganeh said a claim by Saudi Crown Prince Mohammed bin Salman that the Kingdom could replace Iran's crude exports was "nonsense". No one else will believe him.
Zangeneh further said any country that makes claims about supplying the market with more oil to replace lost Iranian exports had no "determining impact" on the market, but would lead to short-term psychological outcomes.