Brent crude futures added 81 cents, or 0.77 per cent, to $105.83 a barrel

Oil prices rebounded on Thursday after two days of losses on outstanding supply concerns because of the uncertain outlook for an end to ​the Iran war and worries about the depletion ​of global stockpiles.

Brent crude futures added 81 cents, or 0.77 per cent, to $105.83 a barrel by 0055 GMT.

The benchmark declined more than 5.6 per cent on Wednesday.

The sharp drop in oil prices appears to be pricing in the possibility of a breakthrough in the talks, said Yang An, analyst at Haitong Futures.

However, if Trump insists on ‌making no concessions to Iran, an agreement seems unlikely, and the final outcome of the negotiations could reverse sharply, Yang said.

On Wednesday, Iran announced a new “Persian Gulf Strait Authority,” saying there would be a “controlled maritime zone” in the Strait of Hormuz.

Iran effectively closed the Strait in retaliation for US and Israeli attacks that started the war on February 28. Most of the hostilities has stopped since an April ceasefire.

The supply losses from the key ​Middle Eastern region because of the war have forced countries to pull from their commercial and strategic inventories at a ‌rapid rate, raising concerns about draining them.

The drawdown in oil inventories will make it difficult for oil prices ‌to ​remain low, said ​Mingyu Gao, chief researcher for energy and chemicals at China Futures.

With the Strait of Hormuz blocked, global refined-product and onshore crude inventories are expected to fall below their lowest levels for ‌this time of year in ​the past five years by late May and late June, Gao said.