Oil prices have slid 3 per cent in early Asian trade after a media report said Israel is willing not to strike Iranian oil targets, which eased fears of a supply disruption, and after Opec lowered its outlook for global oil demand growth in 2024 and 2025.

According to Reuters, both benchmarks plunged 3pc in early trade on Tuesday, following a 2pc drop on Monday. Brent crude futures were down $2.27 at $75.19 per barrel, while US West Texas Intermediate futures fell $2.22 to $71.60 per barrel as of 1:27am GMT.

Prices have fallen about $4 this week, nearly wiping out cumulative gains made in the seven sessions up to last Friday when investors were concerned about supply risks as Israel planned to retaliate against a missile attack from Iran.

Israeli Prime Minister Benjamin Netanyahu has told the US that Israel is willing to strike Iranian military targets and not nuclear or oil ones, the Washington Post reported on Monday.