Oil prices edged lower on Thursday, as traders assessed whether the previous day's jump to the highest prices in more than two months had adequately priced in risks for crude oil supply from mounting tensions in the Middle East.

Oil prices jumped on Wednesday as a U.S.-China trade deal and soft inflation report boosted demand expectations and geopolitical concerns sparked fear of supply disruptions.

Crude oil futures slipped on Thursday, easing back after a sharp rally in the previous session driven by concerns that Israel and Iran could be on the verge

Stock markets edged higher Wednesday as investors welcomed cooler US inflation data and a China-US agreement aimed at lowering trade tensions.Investors have worried that a tariff-driven surge in inflation could hinder the Federal Reserve from lowering interest rates to counter the slowdown in growth.

Crude oil prices are currently experiencing a surge, fueled by tight supply and positive market sentiment. However, Anand Rathi Shares and Stock Brokers' Naveen Mathur cautions that this upward trend might be short-lived.

US and Chinese negotiators said overnight that they had agreed on a framework deal to restore their trade truce and continue further negotiations. US president Donald Trump then s