ISTANBUL

Brent crude oil on Thursday climbed towards $104 per barrel after losing more than 2% on Wednesday, with West Texas Intermediate trading near $92 amid the ongoing conflict in the Middle East.

Oil prices rose as the US and Iran delivered opposing signals about attempts to resolve the conflict that has effectively closed the Strait of Hormuz, disrupted large portions of crude output, and heightened fears of a worldwide energy crunch, according to Bloomberg.

The White House maintained that peace negotiations are ongoing, but Tehran dismissed US proposals and set out its own demands, including sovereign authority over the vital shipping route.

BlackRock President Rob Kapito on Tuesday warned that markets could be undervaluing the dangers tied to the conflict. He noted that oil could still surge to $150 per barrel even if an end to the war were announced immediately, since restoring supply chains to normal levels would take time

Late Wednesday, US President Donald Trump reiterated that discussions with Tehran were ongoing, saying they were eager for an agreement but reluctant to admit it publicly.

Iran’s foreign minister stressed Wednesday that no negotiations are taking place between his country and the US on ending the war, despite claims by the White House.