Oil prices extended gains on Thursday after big increases in ‌the previous session amid reports of action against ships by both Iran and the US and stalled peace talks.

Brent crude futures was at to $104 a barrel, after settling above $100 ​for the first time in more than two weeks on Wednesday. West Texas Intermediate futures was trading at $95.18.

Both benchmarks closed more than $3 higher on Wednesday.

Iran's Islamic Revolutionary Guard Corps (IRGC) captured two commercial vessels in the Strait of Hormuz saying the vessels violated maritime regulations, operated without permits, and tampered with navigation systems. The IRGC identified the seized ships as Panama-flagged MSC Francesca and Liberia-flagged Epaminondas. A third ship, identified as the Euphoria, was also fired upon and reportedly became stranded near the Iranian coast. 

The US military has intercepted at least three Iranian-flagged tankers in Asian waters and is redirecting them away from positions near India, Malaysia and Sri Lanka, shipping and security sources said on Wednesday.

Meanwhile, commodity experts at Standard Chartered said the Brent crude price of $95/bbl appears to represent an uneasy equilibrium between hopes of de-escalation and structural tightness in physical balances that is increasing as time passes.