Oil prices rose 1.5 per cent on Thursday, extending gains for a third day, amid concerns the United States could launch military action against Iran.

Brent crude futures rose 94 cents to $69.34 a barrel by 07:30 GMT, while US West Texas Intermediate gained 92 cents to $64.13 a barrel.

Both contracts have climbed about 5 per cent since Monday and are trading at their highest levels since September 29, according to market data figures.

Prices were supported by geopolitical risk as President Donald Trump increased pressure on Iran over its nuclear programme and a US naval group arrived regionally.

Read More: Power Tariff May Rise by Rs0.48 Per Unit

Additional support came from supply disruptions, including outages at Kazakhstan’s Tengiz oilfield and US production losses caused by Winter Storm Fern over the recent weekend.

US crude inventories unexpectedly fell by 2.3 million barrels to 423.8 million barrels, easing supply concerns and adding momentum to prices during the reported week.

Analysts said Iranian tensions have added a three to four dollar geopolitical premium, with further escalation potentially pushing Brent prices towards $72 within coming months.