RoydadNaft –  Oil prices rose in Asian trading on Thursday amid efforts by the United States and Iran to reduce tensions in negotiations over Tehran’s nuclear programme, even as both sides have increased military activities in the key oil-producing region.

According to Roydad Naft, Brent futures rose by 24 cents (0.3%) to $70.59 per barrel (at 04:15 GMT). US West Texas Intermediate (WTI) crude also gained 28 cents (0.4%) to $65.47.

Both benchmarks rose more than 4% on Wednesday, recording their highest settlements since 30 January. Traders are pricing in the possibility of supply disruptions due to concerns over a potential conflict between the United States and Iran.

The market’s primary concern is the potential disruption to shipping through the Strait of Hormuz, through which around 20% of global oil consumption passes (according to ANZ analysts).

Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment Institute, stated: “Tensions between Washington and Tehran remain high, but the prevailing view is that a full-scale armed conflict is unlikely; therefore, the market is in a wait-and-see mode.”

He added: “US President Donald Trump does not want a sharp rise in oil prices, and in the event of military action, it would likely be limited to short-term airstrikes.”

The White House announced on Wednesday that limited progress had been made in the Geneva talks on Iran, though differences remain on some issues, and Tehran is expected to provide more details in the coming weeks.

In related news, two days of peace talks between Ukraine and Russia in Geneva ended on Wednesday without any tangible outcome. Ukrainian President Volodymyr Zelenskyy accused Moscow of deliberately delaying US-mediated efforts to end the four-year war.

According to data released by the American Petroleum Institute (API) on Wednesday, US crude oil, gasoline, and distillate stocks declined last week. This figure contrasted with Reuters’ survey forecast (an increase of 2.1 million barrels in crude stocks for the week ending 13 February).

The official US inventory report from the Energy Information Administration (EIA) is due to be released on Thursday.