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By Shariq Khan

NEW YORK, June 11 (Reuters) - Oil prices fell sharply after U.S. President Donald Trump said he has cancelled plans to strike Iran on Thursday.

Brent futures LCOc1 fell $3.37, or 3.6%, to $89.73 a barrel by 1:38 p.m. EDT (1738 GMT), while U.S. West Texas Intermediate (WTI) crude futures CLc1 fell $3.20, or 3.6%, to $86.83 a barrel.

Trump had earlier on Thursday threatened to hit Iran "very hard" as tensions in the Middle East escalated sharply over recent days. Still, Iranian sources and Western officials had said indirect talks for a preliminary peace deal between the two sides had intensified.

Trump said he cancelled the strikes because discussions "have been brought to the highest level of Iranian leadership and approved". He did not share more details in his social media post announcing the decision.

"Discussions and final points have been, in both concept and great detail, approved by all parties involved," Trump said in his post.