After rising sharply in recent days, the main US oil contract, WTI, fell 4.6 percent to $59.18 a barrel, after falling more than five percent.
International benchmark Brent North Sea crude fell 4.4 percent to 63.61 dollars.
Trump added that he had been told that the killings of protesters there had stopped.
Crude prices have rallied in recent days as Trump has spoken of coming to the aid of the Iranians in a crackdown on protests that have fueled concerns about potential disruptions to global supplies.
“Oil prices are falling sharply after Trump signaled no military action against Iran,” noted Victoria Scholer, head of investments at Interactive Investor.
Volatility widened in commodity markets, with silver falling more than seven percent in Asian trade to hit a record high of $93.75 an ounce.
This came after Trump also halted tariffs on critical minerals.
Gold prices, which have hit several record highs in recent months thanks to their status as a safe haven investment, fell on Thursday.
In stock market trading, a fourth-quarter net profit forecast by Taiwanese chipmaking titan TSMC helped turn around investor sentiment.
The tech-heavy Nasdaq Composite rose nearly 1 percent as trading resumed in New York.
“A strong set of results from a Taiwanese semiconductor manufacturing company quickly changed the mood, reminding markets that enthusiasm around artificial intelligence and long-term growth themes is very much alive,” said Forex.com analyst Fawad Razakzada.
He noted that technology stocks looked weak in recent weeks as investors shifted funds to other sectors.
Meanwhile, Labor Department data showed that first-time jobless claims in the United States fell by 200,000 last week.
“The main takeaway from the report is that it supports a low-firing-low hiring environment that will keep the Fed on watch but on hold in terms of rate cuts this month and possibly into June,” said Briefing.com analyst Patrick O’Hare.
With US inflation continuing to run above its two percent target rate and both the labor market and the overall economy holding, Federal Reserve policymakers have signaled they will cut rates at this month’s meeting.
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