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Osmond ChiaBusiness reporter
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Global oil prices rose in Asian morning trade on Thursday as investors watch developments in the fragile US-Iran ceasefire.
The conditional two-week ceasefire has been tested after Israel launched a wave of deadly strikes on Lebanon, prompting Tehran to warn of a "regret‑inducing response" if the attacks continue.
Traffic through the crucial shipping route has been severely disrupted after Iran threatened to attack vessels that try to cross the strait, in retaliation against US-Israeli airstikes on Iran.
Global benchmark Brent crude was up 2.2% at $96.70 (£72.18), while US-traded West Texas Intermediate was 2.8% higher at $96.90.
Oil prices remain far higher than they were before the war started on 28 February.
The cost of crude has moved higher due to suggestions that talks between Iran and the US were "still fragile", said OCBC bank strategist Sim Moh Siong.
The flow of energy shipments through the Strait of Hormuz will be the market's key focus in the days ahead, he added.
There is also uncertainty over how Tehran plans to oversee the movement of ships, Sim said.
Traders are watching for any changes to the supply of oil, while the relationship between Iran and the US is "obviously fragile", Danny Price from consultancy Frontier Economics.
Given that some damaged oil and gas facilities will take time to fix, it is likely that prices will remain higher for at least a year, he added.
Major Asian markets fell slightly on Wednesday. Japan's Nikkei 225 index dipped by 0.5%, while the Kospi in South Korea was down 1.2%.
The ceasefire was announced on Tuesday evening Washington time shortly before a 20:00 EDT (00:00 GMT on Wednesday) deadline set by US President Donald Trump.
He had warned that "a whole civilisation will die tonight" if no deal was reached.
One of the conditions of the agreement was that ships would be able to safely use the Strait of Hormuz.
Ships in the Gulf have received a warning from Iran's navy that any vessels seeking to cross the Strait of Hormuz without permission "will be targeted and destroyed", the shipping brokerage firm SSY has confirmed to BBC Verify.
Only a handful of ships have crossed the waterway since the deal was announced - well below the rate of some 130 vessels that transited daily before the war.
It will take a minimum of 10 days to clear the existing backlog of vessels, even if the strait resumes its usual volume of shipping, according to maritime tracking firm Pole Star Global.
There is also disagreement over whether Lebanon is included in the ceasefire.
On Wednesday, Israel launched its heaviest bombardment of the country in this conflict, killing at least 182 people.
Hezbollah said in a statement posted on social media that it had fired rockets at northern Israel. The Iran-backed militia says it was in response to ceasefire violations.
US Vice President JD Vance is scheduled to take part in negotiations with Iran in Pakistan on Saturday.
