Oil prices were little changed in choppy trade on Thursday as investors tracked developments in talks between the U.S. and Iran over the OPEC member’s nuclear program, weighing potential supply concerns if hostilities escalate.

Brent crude futures were up 28 cents, or 0.4%, at $71.13 a barrel by 1:54 p.m. EDT. WTI futures rose 13 cents or 0.2% to $65.55.

The U.S. and Iran held indirect talks in Geneva on Thursday over their long-running nuclear dispute to avert a conflict after U.S. President Donald Trump ordered a huge military build-up in the region.

Oil prices had gained over a dollar a barrel after media reports indicated the talks had stalled over Washington’s insistence on zero enrichment of uranium by Iran, as well as a demand for the delivery of all 60% enriched uranium to Washington.

However, benchmarks gave up much of the gains after Omani Foreign Minister Sayyid Badr Albusaidi said significant progress had been made in Thursday’s meeting.

“We will resume soon after consultation in the respective capitals. Discussions on a technical level will take place next week in Vienna,” Albusaidi posted on social media site X.

Traders said the U.S.-Iran talks are likely to remain the focal point for oil markets over the coming sessions. Any signs of breakdowns in the talks will raise concerns of Middle East supply disruptions and push prices higher, while signs of progress will lead to selloffs, one trader said.

US Crude Stocks Jump, Curbing Price Gains

U.S. crude inventories rose by 16 million barrels last week, Energy Information Administration data showed on Wednesday. [EIA/S]

Also on the supply side, Saudi Arabia is boosting oil production and exports in a contingency plan should any U.S. strike on Iran disrupt supplies from the Middle East, two sources familiar with the plan said on Wednesday.

OPEC+, which groups members of the Organization of the Petroleum Exporting Countries and allies including Russia, is likely to consider raising oil output by 137,000 barrels per day in April, three sources with knowledge of OPEC+ thinking said as the group prepares for peak summer demand while prices remain strong.

Brent rose on Monday to its highest since July 31 as Washington positioned military forces in the Middle East in its bid to press Iran to negotiate ending its nuclear and ballistic missile program.

An extended conflict could disrupt supplies from Iran, OPEC’s third-biggest crude producer, and other Middle East exporters.

“A constructive resolution would likely prompt the market to gradually unwind as much as a $10 per barrel risk premium,” ING analysts said in a note.

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(Reporting by Georgina McCartney in Houston, Shariq Khan in New York, Enes Tunagur in London, additional reporting by Shadia Nasralla, Yuka Obayashi in Tokyo and Emily Chow in SingaporeEditing by Emelia Sithole-Matarise, David Goodman, Nia Williams and David Gregorio)