Oil prices fell in early trade on optimism the Middle East conflict could be nearing an end after a 10-day ceasefire between Lebanon and Israel took effect and President Donald Trump said the US and Iran may meet for talks on the weekend, reports Reuters.

Brent crude futures declined by 61 cents, or 0.61 per cent, to $98.78 a barrel at 0707 GMT.

US West Texas Intermediate crude futures fell 89 cents, or 0.94pc, to $93.8 a barrel, trimming gains from the previous session.

Analysts from ING estimate that roughly 13 million barrels per day of oil flow has been disrupted by the closure of the Strait.