Oil prices edge higher as markets weigh reports of mediation efforts against fresh attacks exchanged by the US and Iran as well as threats of a naval blockade of Saudi Arabia by Yemen’s Houthis, Reuters reports.

Brent crude futures has risen 48 cents, or 0.5pc, to $89.70 a barrel by 0950 GMT.

The front-month US West Texas Intermediate crude contract, which expires today, is up 59 cents, or 0.7pc, at $83.82.

The more active contract for September delivery has risen 50 cents, or 0.6pc, to $82.98.

“There’s some hope of de-escalation between the US and Iran. Reports are that mediators are proposing a 10-day ceasefire, which could put the memorandum of understanding back on track,” ING analysts have said in a note.