-- Oil prices rose on Thursday amid reports that the US and Iran were considering a two-week extension of their current ceasefire.
Front-month West Texas Intermediate crude futures added 0.1% to $91.39 per barrel, while Brent futures were up 0.7% to $95.56/bbl.
While the Strait of Hormuz remains effectively closed by a US naval blockade, investors are pinning hopes on a second round of peace talks to prevent further supply shocks.
"The two parties are reported to be considering extending their ceasefire by another two weeks to allow for more time to negotiate a peace agreement, according to a Bloomberg report," ANZ analysts said.
The current ceasefire is slated to expire on April 21, leaving the market hypersensitive to any signals regarding the extension.
Iran has reportedly warned it could retaliate against the continued blockade by suspending shipments in the Persian Gulf and Red Sea.
ING analysts underscored the fragility of the recovery, noting that "US and Iranian demands remain fairly wide apart."
Any breakdown in the peace talks could immediately reignite the war premium, analysts noted.
On the supply side, US crude stockpiles fell by 900,000 barrels to 463.8 million bbls in the week ended Apr. 10, the Energy Information Administration said in its weekly report on Wednesday.