Brent crude initially leaped to $126 a barrel before settling at $116.
Israel’s reaction, another party to the conflict, was also uncertain. Mr Trump has repeatedly said that Iran is eager to reach an agreement.
The Jnr Khamenei is widely regarded as the most likely successor, following the death of his father in a joint attack launched by U.S. and Israeli forces.
The White House has yet to confirm the meeting.
On Monday, Hamas informed Qatari and Egyptian mediators that it agreed to the terms of the ceasefire deal they had drafted.
