Oil prices rise on Thursday

Oil prices rose on Thursday as markets awaited talks between US President Donald Trump and Chinese President Xi Jinping for signs of progress on the Iran conflict, which has severely disrupted global oil supplies.

Brent crude futures rose 26 cents to $105.89 a barrel by 0250 GMT, while US West Texas Intermediate crude gained 32 cents to $101.34. Both benchmarks fell on Wednesday amid concerns that rising fuel prices could fuel inflation and lead to further US interest rate hikes.

Markets are closely watching whether Trump can persuade China to pressure Tehran into reaching a deal with Washington to end the conflict. However, analysts said Beijing is unlikely to push Iran aggressively given their strategic ties.

The Strait of Hormuz, a critical global energy shipping route, has remained largely shut since the war began in late February, raising fears over supply shortages. Analysts said failure to reopen the strait could increase the risk of renewed military action.

The International Energy Agency said global oil supply is now expected to fall short of demand this year as the conflict disrupts Middle East production and rapidly depletes inventories.