TOKYO: Brent crude futures rose 26 cents, or 0.33 percent, to $79.62 a barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 12 cents, or 0.16 percent, to $75.90 a barrel.

The modest rebound followed a steep decline in prices earlier this week. Brent crude settled below the $80-a-barrel mark on Tuesday for the first time since July 13 and ended the session down more than 5 percent, extending losses from Monday amid growing hopes of a swift resolution to the conflict.

Before the conflict, around 20 percent of global oil and liquefied natural gas shipments passed through the Strait of Hormuz. Concerns over potential supply disruptions had earlier pushed oil prices up by as much as 50 percent in March.

Meanwhile, market participants also monitored U.S. inventory data. According to sources citing figures from the American Petroleum Institute (API), U.S. crude oil and gasoline inventories increased last week, while distillate stockpiles declined.