Oil prices rose above $102 per barrel on Thursday, as renewed tensions in the Strait of Hormuz overshadowed the effects of a prolonged ceasefire between the United States and Iran.

International benchmark Brent crude was trading at $102.7 at 09.12 local time (06.38) per barrel in international futures markets, up 0.7% from the previous close while West Texas Intermediate (WTI) crude traded at $93.9 per barrel, The Caspian Post reports, citing foreign media.

Prices had risen as high as $102.31 on Wednesday before settling at $101.91.

Oil prices had initially eased after US President Donald Trump extended the ceasefire with Iran. However, reports that Iran intervened in two foreign vessels over alleged security violations in the Strait of Hormuz pushed prices back toward the $100 level.

Expectations that the ceasefire will hold limited gains, while ongoing geopolitical tensions and conflicting statements in the Middle East increased volatility.

Shipping traffic through the Strait of Hormuz - a key artery for global energy trade - had been largely disrupted amid escalating conflict involving U.S. and Israeli strikes on Iran and Tehran’s retaliatory actions.

Meanwhile, the US Energy Information Administration said commercial crude inventories rose by about 1.9 million barrels last week to 465.7 million barrels, against expectations of a draw.