Oil prices have fallen in Asia after US President Donald Trump said negotiations to end the war are progressing, while Iran has said "non-hostile" vessels can use the crucial Strait of Hormuz shipping route.

Brent crude fell by 5% to $99.

16) a barrel, while US-traded oil fell by more than 5.

Trump said on Tuesday that talks to end the war are happening "now" and that the people the US were in discussions with "want to make a deal so badly" - a claim disputed by Iranian officials.

On Monday, officials in Tehran said claims of talks between the US and Iran were "fake news", as strikes between Israel and Iran continued to be exchanged.

Trump said Vice President JD Vance and Secretary of State Marco Rubio were involved in the discussions to end the war.

The president added that the US-Israeli strikes on Tehran have led to "regime change", repeating his claim that Iranian leaders have agreed that they will never have a nuclear weapon.

But Tehran has previously rejected claims that it had been in contact with the US, calling it an attempt to manipulate markets.

The New York Times, Reuters news agency and Israel's Channel 12 have reported that the US has handed over a 15-point plan to Iran, citing unnamed sources.

Channel 12 said the US' demands included the Strait of Hormuz being opened and that it would be recognised as a free maritime zone.

It also detailed what Iran would receive if it accepted the plan, including the removal of sanctions, according to Channel 12.

The BBC has not seen the document and is working to verify the reports.

In a message posted by its mission to the United Nations (UN), Iran said "non-hostile vessels" will be allowed to pass through the Strait of Hormuz, provided they coordinate with "the competent Iranian authorities".

The statement came after some countries appeared to have negotiated safe passage for their vessels despite Tehran threatening to target ships that tried to use the channel.

The Iranian UN mission said on X that ships could have safe passage "provided that they neither participate in nor support acts of aggression against Iran and fully comply with the declared safety and security regulations".

The Israel Defense Forces (IDF) it has begun a "new wave of strikes" in Tehran, targeting the infrastructure of the "Iranian terror regime". Israel also warned residents in the southern suburbs of Beirut, Lebanon to evacuate as the IDF continued strikes on Hezbollah.

Japan's Nikkei 225 and South Korea's Kospi indexes each rose by more than 2%.

Both countries are heavily reliant on oil that passes through the Strait of Hormuz.

The drop in oil prices on Wednesday suggests the market now thinks the chances of a prolonged supply disruption and other worst-case scenarios are less likely than before, said Goh Jing Rong from the Singapore Management University.

Trump's remarks have raised hopes that the conflict will ease, but the drop in oil prices will only last if there is a "credible follow-through", such as safe passage for vessels from the Gulf, he said.

Energy prices have soared since the war started, as Iran has effectively blocked the Strait of Hormuz, a narrow waterway which usually sees about 20% of the world's oil and liquefied natural gas pass through each day.

The price of Brent crude rose back above $100 a barrel on Tuesday and even after the latest falls remains much higher than before the US and Israel launched attacks on Iran on 28 February.

Governments around the world have announced measures in recent weeks aimed at easing the impact of rising oil prices on their economies

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