Brent crude futures settled up 9 cents, or 0.09%, at $105.72 per barrel, while U.S. West Texas Intermediate crude gained 15 cents, or 0.15%, to close at $101.17. Brent traded as high as $107.13 earlier in the session before giving back most of its gains.
Markets remained highly sensitive to developments surrounding the Iran conflict and the status of shipping through the Strait of Hormuz. Iranian state media reported that roughly 30 vessels had crossed the strait since Wednesday evening, an improvement from recent activity levels, though still far below the roughly 140 daily crossings seen before the war began in late February.
Investors also monitored growing diplomatic involvement from China after U.S. President Donald Trump and Chinese President Xi Jinping agreed during meetings in Beijing that the strait should remain open to global energy flows. China has reportedly expressed interest in increasing purchases of U.S. crude as it seeks to reduce reliance on Middle Eastern shipping routes.
Despite signs of limited transit resuming, security risks in the region remain elevated. An Indian cargo vessel was sunk off the coast of Oman, while another ship near the UAE port of Fujairah was reportedly boarded and redirected toward Iran. Iran has also reportedly begun selectively allowing some Chinese-linked vessels to transit the strait.
Analysts said the gradual increase in ship movements may help stabilize market sentiment but is unlikely to significantly loosen global supply conditions in the near term.
Broader concerns about the economic impact of the conflict also continued to weigh on markets. The International Monetary Fund warned that the global economy is moving toward a more adverse scenario as elevated energy prices and supply disruptions slow growth and intensify inflation pressures.
Meanwhile, U.S. inventory data showed crude stockpiles fell by 4.3 million barrels last week as exports increased, reinforcing signs of a still-tight oil market despite heightened volatility.