Oil prices fell on Wednesday as market uncertainty over Middle East tensions outweighed optimism after United States President Donald Trump suggested the US-Israeli conflict with Iran could be close to resolution.

June Brent crude slipped $1.06, or 1 per cent, to $102.91 a barrel by 1106 GMT, hitting a session low of $98.35.

May West Texas Intermediate dropped $1.44, or 1.4 per cent, to $99.94 a barrel, after earlier falling to $96.50.

Oil prices climbed earlier on Wednesday but later gave up gains as uncertainty over the Middle East conflict prompted investors to take profits.

“Oil prices fell after US President Trump signalled a potential end to the war with Iran,” ING said in a report.

The International Energy Agency warned that oil supply disruptions in the Middle East are set to worsen in April and will begin to affect Europe as the closure of the Strait of Hormuz further restricts exports, IEA head Fatih Birol said on Wednesday.

The agency said more than 12 million barrels of oil have already been lost due to attacks on energy infrastructure and shipping limits, and that April’s supply losses are expected to be roughly double those of March.

Brent crude futures for June delivery fell over $3 on Tuesday after unconfirmed media reports suggested Iran’s president might be prepared to end the war, leading to profit‑taking by traders.