Oil prices fell more than three per cent on Thursday after US President Donald Trump said killings of demonstrators in nationwide protests in Iran were stopping, tempering concerns over military action against Iran and supply disruptions.

Brent futures LCOc1 were down $2.19, or 3.3pc, at $64.33 a barrel by 8:45am GMT, while US West Texas Intermediate crude CLc1had slipped $2.07, or 3.34pc, to $59.95 a barrel.

Brent futures rose above $66.50 a barrel on Wednesday before giving back most gains after Trump’s remarks reduced expectations of a potential US attack on Iran.

Trump turned the oil market mood by saying he had received assurances that killings of demonstrators in Iran had stopped, said PVM analyst John Evans, adding that prices on Thursday reflect the narrative of a near-term future of oversupply.

Further weighing on prices, US crude and gasoline inventories rose last week more than analysts had estimated, the Energy Information Administration said on Wednesday.

Also on the supply side, Venezuela has begun reversing oil production cuts made under a US embargo as crude exports were also resuming, three sources said.

On the demand side, OPEC said on Wednesday that oil demand was likely to rise at a similar pace in 2027 as this year and published data indicating a near balance between supply and demand in 2026, contrasting with other forecasts of a major glut.

Meanwhile, China’s crude oil imports rose 17pc from a year earlier in December, while total imports in 2025 rose 4.4pc, government data showed, with daily crude import volume hitting all-time highs in December and for all of 2025.