By: Economy Middle east

Oil prices rose on Thursday as Washington and Tehran sought to defuse tensions in negotiations over Iran’s nuclear program, even as both sides stepped up military activity in the strategically vital oil-producing region.

As of 6:47  GMT, Brent crude futures rose 9 cents, or 0.13 percent, to $70.44 a barrel, while U.S. West Texas Intermediate (WTI) gained 12 cents, or 0.18 percent, to $65.31 a barrel.

Supply disruption fears rise amid U.S.-Iran tensions

Oil prices ended Wednesday’s session more than 4 percent higher, marking their strongest settlements since January 30, as traders factored in the risk of supply disruptions linked to rising U.S.-Iran tensions. The key worry for oil markets is that any escalation could interfere with shipments through the Strait of Hormuz, a critical chokepoint that carries roughly 20 percent of global oil consumption.

Some headway was achieved in this week’s talks in Geneva, the White House said on Wednesday, though significant gaps remain on several key issues. Washington added that Tehran is expected to return in the coming weeks with more detailed proposals.

Iran, meanwhile, issued a Notice to Airmen announcing planned rocket launches across parts of its southern region on Thursday, according to information posted on the U.S. Federal Aviation Administration’s website.

At the same time, the United States has moved additional warships closer to Iranian waters. U.S. Vice President JD Vance said Washington is weighing whether to continue diplomatic engagement with Tehran or consider another option.

In addition, two days of peace talks in Geneva between Ukraine and Russia concluded on Wednesday without a breakthrough. Ukrainian President Volodymyr Zelenskiy accused Moscow of dragging U.S.-backed efforts to bring the four-year war to an end.

U.S. crude inventories decline

Oil prices found additional support, as industry figures pointed to a tighter supply backdrop in the United States. The American Petroleum Institute said U.S. crude inventories declined by about 609,000 barrels in the week to February 13, countering expectations of a 2.1 million-barrel build and reversing the previous week’s surge of more than 13 million barrels.

A drop in stockpiles typically reflects stronger refinery demand or limited supply, both supportive factors for oil prices.

Traders are now awaiting official data from the Energy Information Administration, due later on Thursday, for confirmation of the draw. Still, investors remained cautious about the global demand outlook and the risk of further monetary tightening in major economies, which could dampen fuel consumption.