Oil closes near six-month high

Oil drilling rigs

Oil prices settled higher on Thursday, closing near their highest level in six months, amid growing concerns over a potential collapse in diplomatic talks between Iran and the US, while US crude inventories declined.

Brent crude futures for April delivery rose 1.86%, or $1.31, to $71.66 per barrel.

US WTI crude futures for March delivery gained 1.90%, or $1.24, to $66.43 per barrel.

The gains followed remarks by US President Donald Trump, who said he would decide within 10 days whether to continue diplomatic negotiations with Tehran or order a military strike, after Washington deployed naval assets near Iran in recent weeks.

On the other hand, Iran’s Fars News Agency reported that Tehran is planning joint military drills with Russia, after temporarily closing the Strait of Hormuz for several hours last Tuesday as part of military exercises.

Oil prices also received additional support from official data showing that US crude inventories fell by 9 million barrels last week, contrary to expectations of an increase of more than one million barrels.