US crude prices rose over 1% as investors assessed de-escalation prospects and Iran’s review of a Washington proposal to end the Gulf conflict.

TOKYO: US oil prices rebounded in early Asian trade on Thursday, recovering some of the previous session’s sharp losses.

Investors were assessing prospects for de-escalation in the Middle East as Iran reviewed a US proposal to end the war that has disrupted energy flows from the Gulf.

US West Texas Intermediate crude futures climbed more than USD 1 to USD 91.42 a barrel at the open.

They were last up 93 cents, or 1%, at USD 91.25 a barrel, after losing 2.2% on Wednesday.

A senior Iranian official told Reuters that Tehran was still reviewing the US proposal despite an initial negative response.

This indicated Iran had so far stopped short of rejecting the plan outright.

White House press secretary Karoline Leavitt said President Donald Trump would hit Iran harder if it failed to accept it had been “defeated militarily.”

Iranian officials have publicly scorned the prospect of any negotiations with the Trump administration.

However, an apparent delay in delivering a formal response to Pakistan, which delivered the 15-point proposal on Washington’s behalf, suggested some figures in Tehran may be considering it.

 The Sun Malaysia