Oil prices rose on Thursday after falling earlier in the session, as investors assessed the prospects for progress in reopening the Strait of Hormuz, along with broader risks to energy supplies in the Middle East.

In trading, Brent crude futures rose 0.6% or $0.50 to $88.37 a barrel at 12:14 GMT, while U.S. West Texas Intermediate crude rose 0.1% or five cents to $82.28 a barrel.

Earlier in the session, Brent crude fell to $86.22 a barrel, while West Texas Intermediate crude dropped to $80.65.

Diplomatic moves to reopen the strait

The Qatari prime minister is heading to Iran on Thursday to relaunch diplomatic talks aimed at ending the conflict between the United States, Israel and Iran, which has entered its sixth month and has effectively closed the vital Strait of Hormuz to energy exports from the Gulf region.

The visit comes amid a temporary lull in fighting, but without any diplomatic breakthrough so far. The two sides disagree on control of the strait, which Tehran has used as leverage in negotiations.

The waterway carried about one-fifth of the world's daily supply of oil and liquefied natural gas before the conflict erupted in late February.

Data showed that shipping traffic through the strait rose slightly on Wednesday, despite the continued standstill.

A senior Iranian source said on Wednesday that Iran and Oman are finalizing details of an agreement to control the strait, after the Iranian Revolutionary Guard announced that the two countries had agreed on how to share the management of the waterway.

The United States halted its attacks on Iran about a month ago and is instead seeking to exert greater economic pressure on Tehran, which has boosted investors' expectations that disruptions to energy supplies in the Gulf could ease.