Stocks of Asian energy shipping companies and oil producers slid Tuesday after crude prices slumped overnight amid hopes for a diplomatic deal to end the Middle East conflict.

Oil prices took their biggest daily tumble in months on Monday after reports suggested that the leadership of both countries are interested in resuming peace talks. Both West Texas Intermediate crude-oil futures and Brent futures settled over 7% lower.

Crude oil has since edged higher in Asian trading, with WTI last 0.2% higher and Brent gaining 0.1%, ICE data showed.

Energy shipping companies in Hong Kong and China tumbled, with China Merchants Energy's shares down 5.0% in Shanghai. Cosco Shipping Energy Transportation shares dropped 6.7% and 5.9% in Hong Kong and Shanghai, respectively.

Chinese oil companies Cnooc, PetroChina and Sinopec each slid around 2% to 4% in Hong Kong and Shanghai on Tuesday morning. Energy-related equities typically decline alongside falling oil prices as lower crude could weigh on selling prices and revenue.

In South Korea, shipping company Pan Ocean fell 4.6%. S-Oil led losses in energy stocks, with shares down 10%. Petroleum producer SK Innovation fell 8.4%.

Renewed diplomatic efforts lifted hopes for an end to the war and stabilization of Middle East crude supply, said Commonwealth Bank of Australia's Ryan Felsman in a note.

"The risk-reward of maintaining large oil-shock trades is becoming less compelling as diplomacy appears to emerge," said MUFG Research's Lloyd Chan.

Still, Chan cautioned that the geopolitical premium in crude hasn't disappeared.