US oil prices fall on prospect of Middle East ceasefire easing supply disruption

TOKYO, March 25 (Reuters) - U.S. crude futures fell about 4% in early trade on Wednesday on the prospect of a possible ceasefire easing disruption to global oil supply, following reports that Washington had sent Tehran a 15-point plan to end the war in the Middle East.

U.S. West Texas Intermediate (WTI) crude CLc1 futures dropped to as low as $87.80 a barrel at the open and were down $3.49, or 3.8%, at $88.86 a barrel as of 2305 GMT.

WTI climbed 4.8% on Tuesday, before paring gains in volatile post-settlement trading.

U.S. President Donald Trump said on Tuesday the U.S. was making progress in its efforts to negotiate an end to war with Iran, including winning an important concession from Tehran, while a source confirmed that Washington had sent Iran a 15-point settlement proposal.

Israel's Channel 12, which was first to report the plan, said a one-month ceasefire will be announced according to a mechanism that U.S. Middle East envoys Steve Witkoff and Jared Kushner are working on.

Tehran has denied that direct talks have taken place. Iran's powerful parliament speaker Mohammad Baqer Qalibaf on Monday dismissed such reports as "fake news".