Oil prices rose more than 1.5% in Asian trade, extending gains for a third day on Thursday, on increasing concerns the U.S. may carry out a military attack on key Middle Eastern producer Iran that could disrupt supply from the region. Iran is the fourth-largest producer among the Organization of the Petroleum Exporting Countries with output of 3.2 million barrels per day. Lower interest rates typically make it cheaper for consumers to buy oil, encouraging demand and supporting prices. An unexpected drop in crude stockpiles in the U.S., the world’s biggest oil consumer, also supported prices. “The potential for Iran getting hit has escalated the geopolitical premium of oil prices by potentially $3 to $4 (per barrel),” analysts at Citi said in a note on Wednesday.