SINGAPORE: Oil prices extended their gains on Thursday, rising more than $1 in the wake of stalled peace talks between Iran and the United States and as both nations maintained restrictions on the flow of trade through the Strait of Hormuz.

Brent crude futures rose $1.26, or 1.2%, to $103.17 a barrel at 0630 GMT, after settling above $100 for the first time in more than two weeks on Wednesday. West Texas Intermediate futures were also up $1.20, or 1.3%, at $94.16.

Both benchmarks closed more than $3 higher on Wednesday after larger-than-expected gasoline and distillate stock draws in the U.S., and over the lack of progress on Iran peace talks.

"The oil market is repricing expectations with little sign of progress in finding a resolution in the Persian Gulf," said ING analysts in a note, adding that hopes for a resolution are fading as peace talks stall.

"In addition, Iran's seizure of two vessels attempting to transit the Strait of Hormuz suggests disruptions to shipments are set to continue."

While U.S. President Donald Trump extended a ceasefire between the countries following a request by Pakistani mediators, Iran and the U.S. are still restricting the transit of ships through the strait, which carried about 20% of daily global oil supplies until the war began on February 28.