May 12 (Reuters) - Oil prices rose in early Asian trading on Tuesday as supply concerns persisted, with negotiations to end the trade war between the United States and Iran appearing fragile and Tehran's response to a U.S. proposal showing sharp disagreements.

Brent crude futures rose 30 cents, or 0.29 percent, to $104.51 a barrel, while U.S. West Texas Intermediate crude futures rose 31 cents, or 0.32 percent, to $98.38 by 0002 GMT. Both benchmarks gained about 2.8 percent on Monday.

US President Donald Trump said on Monday that the ceasefire with Iran was "on the verge of collapse," citing disagreements over several demands such as ending the war on all fronts, lifting the US naval blockade on Iran, resuming Iranian oil sales, and compensating for war damages.

Tehran also asserted its sovereignty over the Strait of Hormuz, through which about one-fifth of the world's oil and liquefied natural gas flows pass.

Tim Waterer, senior market analyst at KCM Trade, said in an email, "As long as negotiations between the United States and Iran remain inconclusive and actual flows through the Strait of Hormuz remain constrained, prices are expected to remain above $100."

He added, "Any real progress towards a peace agreement could lead to a sharp correction of between $8 and $12, while any escalation or new threats of a blockade would quickly push Brent crude to over $115."

Disruptions related to the closure of the Strait of Hormuz have prompted producers to cut exports, with a Reuters poll on Monday showing that OPEC oil production in April fell to its lowest level in more than two decades.

Aramco CEO Amin Nasser warned yesterday that disruptions to oil exports through the Strait of Hormuz threaten to delay the market's return to normal until 2027, with a loss of about 100 million barrels of oil per week.

Meanwhile, the Trump administration announced plans on Monday to lend 53.3 million barrels of crude oil from the U.S. Strategic Petroleum Reserve as part of efforts to calm the oil market.

Ship tracking data showed a shipment of crude oil from the US strategic reserve was en route to Türkiye, in the first delivery of its kind to the Mediterranean country.

Meanwhile, just days before the scheduled meeting between Trump and Chinese President Xi Jinping, Washington imposed sanctions on three individuals and nine companies, including those based in Hong Kong, the United Arab Emirates and Oman, accusing them of facilitating Iranian oil shipments to China.

Separately, The Wall Street Journal reported on Monday that the UAE had launched military strikes against Iran, including an attack in early April targeting a refinery on Iran's Lavan Island. The report stated that the UAE had not publicly acknowledged carrying out these strikes.