TOKYO - Oil prices climbed on Friday as investors doubted the prospects of a breakthrough in U.S.-Iran peace talks, ​with the two sides still at loggerheads on Tehran's uranium stockpile and controls on the Strait of Hormuz. ​The market, ​however, remained headed for a weekly loss.

A senior Iranian source told Reuters no deal has been reached with the U.S. but the gaps have narrowed, ⁠while U.S. Secretary of State Marco Rubio said there had been "some good signs" in talks but any toll system in the strait would be unacceptable.

Brent crude futures rose $2.38, or 2.3%, to $104.96 a barrel by 0034 GMT, and U.S. West Texas Intermediate futures were up $1.73, or 1.8%, ​at $98.08.

Both benchmarks declined ‌about 2% ⁠on Thursday to ⁠their lowest closes in nearly two weeks.

"With the outlook for peace talks still uncertain, oil prices are rising ​on expectations that Middle East instability and supply disruptions linked ‌to the Strait of Hormuz will persist," said Satoru Yoshida, ⁠a commodity analyst with Rakuten Securities.

"WTI is likely to remain in a $90–$110 range next week, as it has largely done since late March," he added.

Six weeks since a fragile ceasefire took effect, efforts to end the war have shown little progress, while elevated oil prices have fuelled concern over inflation and the global economy.

Around 20% of global energy supplies transited the Strait before the war, which has removed 14 million barrels per day of oil - or 14% of global supply - from the market, including exports from ‌Saudi Arabia, Iraq, the United Arab Emirates and Kuwait.

Full oil flows ⁠through the Strait will not return before the first or ​second quarter of 2027, even if the conflict ended now, the head of the UAE's state oil firm ADNOC said.

Seven leading OPEC+ oil-producing countries will likely agree to a modest hike ​to July ‌output when they meet on June 7, four sources said, though ⁠delivery for several remains disrupted by the ​Iran war.

(Reporting by Yuka Obayashi; Editing by Nia Williams and Sonali Paul)