Crude oil prices have risen following two days of decline amid ongoing concerns over supply chain disruptions caused by the US-Israel war on Iran.
Brent crude, the international benchmark, climbed 0.77 per cent to reach $105.83 per barrel, while US West Texas Intermediate (WTI) futures gained 97 cents, or 0.99 per cent, to trade at $99.23.
The turnaround comes amid lingering fears about the Iran war ceasefire. A sizeable dip in US crude supplies and inventories has added fresh uncertainty about shrinking reserves.
The recovery follows a sharp decline on Wednesday, when both oil benchmarks dropped more than 5.6 per cent after US President Donald Trump said negotiations with Iran were nearing completion.
At the same time, Trump warned Tehran of more attacks if it refused to accept a peace agreement.
Meanwhile, Asian markets remain uncertain and cautious over whether the upcoming talks will produce any breakthroughs in the conflict, especially as tensions around the Strait of Hormuz near the three-month mark.
Before the outbreak of hostilities, the Strait of Hormuz handled more than 20 per cent of global oil and energy supplies, which have almost dried up since February 28.
Earlier, Iran had announced the formation of a new “Persian Gulf Strait Authority”, saying that a “controlled maritime zone” would operate in the Strait of Hormuz.
However, on Thursday, Iranian authorities said they had released 26 oil tankers from the Strait of Hormuz and facilitated their passage.
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