Oil dropped to a two-week low in New York as the European Union offered to restart negotiations with Iran over its nuclear program, reducing the specter of war in the Middle East, source of 30 percent of the world’s crude.

Futures fell as much as 2 percent after EU foreign policy chief Catherine Ashton, in a statement on behalf of China, France, Germany, Russia, the U.K. and the U.S., urged Iran’s nuclear envoy to meet her to seek an accord on the nation’s nuclear program. Commodities also declined as the euro-area economy contracted and on concern a Greek swap deal will fail.

Crude for April delivery fell to $104.61, the lowest intraday level since Feb. 21. Futures are up 6.2 percent this year.

Brent oil for April settlement declined $1.50, or 1.2 percent, to $122.30 a barrel on the London-based ICE Futures Europe exchange.