LONDON - Oil prices fell on Monday after a long US holiday weekend as traders eyed the stronger dollar and easing tensions over key crude producer Iran. Brent North Sea oil for August delivery slid 1.50 dollars to 142.92 dollars a barrel in electronic deals. However it remained close to the record high 146.69 that was struck last Thursday. New York's main oil contract, light sweet crude for August delivery, dived 2.82 dollars to 142.47 dollars on Monday. The contract had punched a life-time high of 145.85 on July 3. American investors were set to play catch-up with their counterparts in London on Monday, dealers said. US floor trading was shut last Friday but electronic trade continued amid the Independence Day holiday. "Oil futures were lower, with New York catching up with Brent as traders in America were coming back to work after a long holiday weekend," said Sucden analyst Andrey Kryuchenkov. "The greenback was stronger (on Monday), extending gains from the end of last week and helping to put more pressure on oil prices," he added. The strengthening US currency dampens demand for dollar-priced crude which becomes more expensive for buyers using weaker currencies. The dollar rallied against major currencies on Monday after US President George W. Bush, speaking over the weekend ahead of a Group of Eight (G8) summit in Japan, said his administration backed a "strong" dollar. Oil blazed a record-breaking trail last week, driven by geopolitical tensions over Iran, a weaker US dollar and tightening global supplies, traders said. Sky-high oil prices " which ramp up the cost of petrol, jet fuel, and domestic electricity and gas " have triggered fears about higher inflation and slower economic growth. They have also sparked protests around the world. The G8 rich nations " Britain, Canada, France, Germany, Italy, Japan, Russia and the United States " opened a summit Monday aimed at battling rocketing oil and food prices that threaten to derail the global economy. Over the weekend meanwhile, Iran offered to negotiate on its nuclear drive but without a freeze on uranium enrichment, in its first comments since responding to an international package aimed at ending the standoff. EU foreign policy chief Javier Solana said Monday he hoped to meet later this month with Iran's top nuclear negotiator, after Tehran gave its response to a package of incentives to halt uranium enrichment. "Following the news that Iran may be prepared to compromise on its nuclear development programme, oil prices are a little softer," said analysts at the John Hall Associates energy consultancy in London. "However, the region accounts for a sizeable portion of global production so until more definite news of a compromise is forthcoming then prices will continue to attract a premium." Iran, the world's number four crude producer, is locked in a standoff with the West over its nuclear energy programme. The country claims it is for generating electricity while Western nations fear the development of nuclear weapons. Six world powers are offering Iran technology and negotiations if it suspends uranium enrichment.