Brent Oil Futures expiring in May rose 2.3% to $104.54 per barrel, while Crude Oil WTI Futures jumped 2.3% to $92.32 per barrel

Oil prices jumped more than 2% in Asian trade on Thursday amid conflicting remarks around de-escalation in the Middle East, while Iran reviewed a U.S. proposal to end the war.

As of 00:31 GMT, Brent Oil Futures expiring in May rose 2.3% to $104.54 per barrel, while Crude Oil WTI Futures jumped 2.3% to $92.32 per barrel.

Both contracts slid more than 2% in the previous session.

Markets weighed tentative diplomatic signals from Iran, which is reportedly reviewing a U.S. proposal aimed at halting hostilities.

Iran has publicly denied direct negotiations with Washington and indicated that key differences persist. The lack of clarity has kept traders on edge.

Prices have been highly volatile in recent weeks as the war disrupted energy flows from the Gulf, a region critical to global crude supply. Brent crude had surged above $119 a barrel earlier this month on fears of supply outages.

The Strait of Hormuz, a vital transit route for around a fifth of global oil shipments, remains a focal point for markets.

On Wednesday, oil prices dropped after reports of potential negotiations reduced some of the geopolitical risk premium that had built into crude markets.

Oil prices were weighed down by bearish U.S. inventory data from the Energy Information Administration, which pointed to weakening refinery demand.

Data released on Wednesday showed U.S. crude inventories rose by 6.93 million barrels last week, against expectations for a 1.3 million-barrel draw.

Distillate stockpiles surged by 3.03 million barrels, defying expectations for a 1.3 million barrels draw, indicating sluggish demand for diesel and heating fuels.

While gasoline inventories dropped by 2.59 million barrels, the draw was smaller than the previous week’s steep decline.