Oil prices rose in Asian trading Thursday as escalating tensions between the U.S. and Iran prompted traders to price in a higher risk premium for crude. Brent crude futures gained 0.4% to $69.64 per barrel, while West Texas Intermediate crude rose 0.4% to $64.74 per barrel by 21:19 ET.

Markets were digesting signs of strength in the U.S. economy alongside a sharp increase in domestic inventories. Reports indicated Washington was considering sending a second aircraft carrier to the region and potentially seizing oil tankers carrying Iranian crude. While Iran and the U.S. had reported some progress in weekend talks, markets remained on edge over Tehran's nuclear activities.

A batch of U.S. economic data offered mixed signals to oil markets. Stronger-than-expected January payrolls pointed to unexpected economic strength, driving hopes that demand from the world's largest fuel consumer would remain robust. However, the data also diminished expectations for lower U.S. interest rates, pushing up the dollar and limiting gains in oil prices. Crude markets faced additional pressure from a substantially larger-than-expected 8.5 million barrel build in U.S. inventories, showing some reversal in tight supplies after extreme cold weather disrupted production earlier in the year.