Oil prices on Tuesday erased losses and ticked higher, as uncertainty over the state of U.S.-Iran peace talks deepened amid mixed messaging from both parties.

Iranian media for a second straight day reported that Tehran had stopped exchange of messages with Washington. On the other hand, President Donald Trump and Secretary of State Marco Rubio asserted that negotiations were ongoing, leaving traders in a state of limbo.

Bitcoin slid on Monday, hitting an over seven-week low after top corporate holder Strategy sold some of the digital currency for the first time in over three years. Cryptocurrencies were also weighed down by fresh tensions between the U.S. and Iran and continued uncertainty over the state of their peace talks.

The world’s largest cryptocurrency has also been reeling from an over $3 billion selldown in crypto-linked exchange-traded funds by institutional investors over the past three weeks. It was last down 3.6% to $71,192.7 by 17:22 ET (21:22 GMT).

The U.S. dollar turned lower on Friday, as risk sentiment outweighed safe haven demand after President Donald Trump said he will be meeting with his officials to make a final determination on a peace deal with Iran.

Still, the currency was headed for a solid monthly gain, driven by a bond sell-off and raised expectations for interest rate hikes. 

At 16:52 ET (20:52 GMT), the U.S. dollar index, which tracks the greenback against a basket of six major peers, was down 0.1% to 98.92. The euro inched up 0.1% to $1.1659, while the sterling added 0.1% to $1.3456.

NEW YORK, May 18 (Reuters) - Oil prices edged up about 2% to a two-week high in volatile trade on Monday as worries over supply disruption from the Iran war offset a report the U.S. had agreed to waive sanctions on Iranian crude during talks.

Brent futures rose $2.15, or 2.0%, to $111.41 a barrel at 12:30 p.m. EDT (1630 GMT), while U.S. West Texas Intermediate (WTI) crude rose $1.98, or 1.9%, to $107.40.

After rising and falling more than $2 a barrel in volatile trading on Monday, Brent was on track for its highest close since May 4 and WTI was on track for its highest close since April 7.