Nov 2 Reuters Oil gained 1 on Thursday to snap its threeday decline, as risk appetite returned to financial markets after the U.S. Federal Reserve kept benchmark interest rates on hold.

Brent crude futures rose 82 cents, or 1, to 85.45 a barrel by 0657 GMT, while U.S. West Texas Intermediate crude futures advanced 83 cents, also 1, to 81.27 a barrel.

Both benchmarks settled at their multiweeks lows in the previous session.

Oil39;s rally comes along with gains across financial assets after the Fed kept its benchmark interest rate unchanged at 5.255.50 at its latest meeting on Wednesday.

Policymakers struggled to determine whether financial conditions may be tight enough already to control inflation, or whether an economy that continues to outperform expectations may need still more restraint.

It is likely that the Fed will once again pause in December, keeping the door open for further hikes if necessary … This could potentially stabilise the riskoff movements experienced over the past few months, Jon Maier, chief investment officer at Global X ETFs, said in a note.

Investors are also watching for developments in the Middle East which has kept investors on edge as a wider conflict could disrupt oil supplies around the region.

Iran39;s Supreme Leader Ayatollah Ali Khamenei called on Muslim states to cease oil and food exports to Israel, demanding an end to its bombardment of the Gaza Strip, state media reported.

Iran, a member of the Organization of the…