Oil prices rose in early Asian trading on Thursday as investors reacted to rising geopolitical tensions between the United States and Iran, which could threaten oil flows from the Middle East.
Brent crude gained 19 cents to $69.59 a barrel, while U.S. West Texas Intermediate rose 20 cents to $64.83, extending gains from the previous session in global energy markets.
The move came after U.S. President Donald Trump said Washington and Tehran had not reached any clear agreement following talks with Israeli Prime Minister Benjamin Netanyahu on Wednesday, keeping uncertainty high.
Trump also warned that the U.S. may deploy a second aircraft carrier to the region if negotiations with Iran fail, heightening concerns over possible military escalation.
Indirect talks between U.S. and Iranian officials were held in Oman last week, but no date has yet been set for the next round of discussions.
Analysts said any further escalation could push oil prices higher, while easing tensions may trigger a pullback in crude benchmarks.
Support for prices also came from strong U.S. economic data, with job growth accelerating and unemployment falling to 4.3%, pointing to steady fuel demand.
However, gains were limited by a sharp rise in U.S. crude inventories, which jumped by 8.5 million barrels last week, far above market expectations.
Despite the stock build, global oil inventories have been rising more slowly than forecast, keeping investor positioning in crude markets relatively balanced.
With tighter sanctions on Russian oil and uncertainty around Iran, analysts say crude prices remain biased to the upside in the near term.