Oil prices rise as investors weigh Middle East peace prospects

Oil prices rose over $1 on Thursday, rebounding from the previous day's sharp losses, as investors weighed ‌the prospects of a Middle East peace deal succeeding.

Brent crude futures were up 78 cents, or 0.8%, at $102.05 a barrel at 0400 GMT. U.S. West Texas Intermediate gained 76 cents, or 0.8%, to $95.84 a barrel.

Both benchmarks slumped more than 7% on Wednesday, hitting two-week lows on optimism over a possible end to the Middle East war. They pared losses, however, after U.S. President Donald Trump said it was "too soon" for face-to-face talks with Tehran and a senior Iranian lawmaker said the U.S. proposal was more of a wish list than a reality.

"While peace negotiations are ⁠likely to continue at least until next week's U.S.-China summit, the outlook beyond that remains uncertain," said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.

Trump and Chinese President Xi Jinping are scheduled to meet next week.

"The main scenario is that oil prices will remain elevated," Kikukawa said.

Iran said on Wednesday it was reviewing a U.S. peace proposal that sources said would formally end the war while leaving unresolved the key U.S. demands that Iran suspend its nuclear program and reopen the Strait of Hormuz.