Oil falls nearly 5% amid expectations of a ceasefire between Washington and Tehran

Oil prices fell about 5% on Wednesday amid expectations of a possible ceasefire that could ease supply disruptions in the Middle East, following reports that the United States had sent Iran a  15-point  plan to end the war between the two countries.

Brent crude futures fell  4.8%, to $99.41 per barrel, while US West Texas Intermediate crude futures fell  3.9%, to $88.69 per barrel.

Both crudes were up about  5% in Tuesday's trading, before their gains pared in a volatile session following the close, and Hiroyuki Kikukawa, senior analyst at Nissan Securities Investments, said that "expectations of a ceasefire have risen slightly, which is pushing the market towards profit-taking."

 "Expectations remain uncertain about the success of the negotiations, which limits the pace of the sale," he told Reuters, noting that oil prices could rise again if fighting resumes or Iranian attacks spill over into energy facilities in neighbouring countries.

In the same context, US President Donald Trump said on Tuesday that the United States is making progress in its efforts to negotiate an end to the war with Iran, while a source confirmed that Washington has submitted a  15-point  settlement proposal.

Israeli media reported that the United States is seeking a month-long ceasefire to discuss the plan, which includes dismantling Iran's nuclear program, stopping support for Tehran-allied groups, and reopening the Strait of Hormuz.

For his part, Pakistani Prime Minister Shehbaz Sharif announced his readiness to host talks between the United States and Iran to end the ongoing dispute between them, while Iran on Monday denied entering into negotiations with the United States.

Media reports showed that Iran had informed the UN Security Council and the International Maritime Organization (IMO) that "non-hostile vessels"  could pass through the Strait of Hormuz, subject to prior coordination with Iranian authorities.