Oil prices pushed higher in early Asian trade Thursday as fears mounted over a potential US-Iran conflict that could choke off shipments through the Strait of Hormuz. Brent futures climbed 24 cents, or 0.3%, to $70.59 a barrel by 0415 GMT. US West Texas Intermediate crude gained 28 cents, or 0.4%, to $65.47 a barrel.

Both benchmarks posted their highest settlements since January 30 after surging over 4% on Wednesday. The rally reflected trader bets on supply risks from heightened Middle East strife. ANZ analysts warned in a research note that any flare-up could disrupt shipping in the Strait of Hormuz, through which 20% of global oil consumption flows.

Tensions between Washington and Tehran show no signs of easing. Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, a unit of Nissan Securities, said a full-scale war remains unlikely. “President Trump does not want a sharp rise in crude prices,” Kikukawa noted. He predicted any US military response would involve limited short-term air strikes.

Diplomatic efforts faltered this week. The White House reported slight progress in Geneva talks with Iran but said gaps persist on key issues. Tehran plans to provide more details in a couple of weeks. On Thursday, Iran issued a notice to airmen for rocket launches across southern areas from 0330 GMT to 1330 GMT, according to the US Federal Aviation Administration website.

The US bolstered its naval presence near Iran. Vice President JD Vance stated Washington is considering whether to stick with diplomacy or explore “another option.” Satellite imagery revealed Iran constructing a concrete shield over a new facility at a sensitive military site, then covering it with soil. Experts said the work advances development at a location Israel reportedly bombed in 2024.

Iranian state media claimed the country closed the Strait of Hormuz for a few hours on Tuesday. Details on whether the waterway fully reopened remained unclear.

Separate global tensions weighed on markets. Two days of Ukraine-Russia peace talks in Geneva wrapped up Wednesday with no agreement. Ukrainian President Volodymyr Zelenskiy accused Moscow of dragging its feet on US-mediated efforts to halt the four-year war.

US inventory data offered some support. Private figures from the American Petroleum Institute showed declines in crude, gasoline and distillate stocks for the week ended February 13, market sources said Wednesday. The data contradicted a Reuters poll forecast of a 2.1 million-barrel crude build. Official numbers from the Energy Information Administration arrive Thursday.