Pakistan, Jan. 15 -- Oil prices fell sharply in early Asian trade on Thursday after U.S. President Donald Trump said that killings in Iran's nationwide protests were subsiding, easing fears of a U.S. military strike and potential supply disruption in the Middle East. This change in sentiment helped calm markets and reversed much of the recent rally driven by geopolitical concerns.

Brent crude futures dropped about $1.67, or 2.5 percent, to around $64.85 a barrel, while U.S. West Texas Intermediate crude fell roughly $1.54, or 2.5 percent, to $60.48 per barrel. Both benchmarks had climbed over one percent in the previous session but gave back most of those gains following Trump's remarks.

Market analysts said selling pressure increased a...