Oil rises as traders’ nervousness about a lack of progress on peace talks between the United States and Iran offset any price impact of a slight recovery in shipping through the Strait of Hormuz, Reuters reports.

Brent crude futures gain $1.02, or 1.42 per cent, to $73.01 a barrel, while US West Texas Intermediate crude rises 93 cents, or 1.36pc, to $69.48 a barrel as of 0748 GMT.

“The deal is by no means signed yet, so something can still go wrong and any comments from either side could raise concern which is helping to underpin prices and it’s basically removing some of the recent intense focus on an increasingly oversupplied market,” Saxo Bank analyst Ole Hansen says.

“So if there’s any further escalation, then $75 would be the natural level to look at next ahead of $80,” Hansen adds.

Investors are monitoring talks between the US and Iran and their implications for shipping through the Strait of Hormuz.