Oil markets saw choppy trade Thursday on conflicting signals over peace prospects in the Middle East as Israel delivered mixed messaging on whether it would accede to Iran's demands to stop bombing Lebanon.

Crude and product futures rebounded Thursday from the selloff of the previous session as tensions flared again in the Middle East from Iran's threat to abandon a ceasefire with the U.S. and Israel if its ally Lebanon remains under attack.

Crude futures retreated to mid-$90 bbl levels Wednesday and product prices tumbled too, driven by a two-week ceasefire announced over the Iran war.

Crude futures were mixed on Tuesday on reports a senior U.N. envoy was traveling to Tehran to pursue peace talks ahead of a U.S. deadline for Iran reopen the Strait of Hormuz or face the destruction of key infrastructure.

Oil futures rose on Monday, recovering from early declines, after the U.S. reiterated its warning that Iran's power plants and bridges will be destroyed by Tuesday, April 7, if it did not reopen the Strait of Hormuz it has blockaded.

Oil and product futures dipped Monday on expectations of a potential truce over Iran despite U.S. President Donald Trump's warning that there will be unrestrained attacks on the country's energy infrastructure if it did not reopen the Strait of Hormuz by Tuesday.

Oil futures prices resumed their rally Thursday after a two-day reprieve, with WTI trading at a premium to Brent for the first time in four years, as the U.S. and Iran threatened further escalation in the five-week long Middle East...