The U.S. dollar on Thursday rose for a fourth straight session and remained pinned at a nearly two-month, as a fresh surge in oil prices boosted inflationary concerns and a rout in the bond market showed no signs of letting up. 

At 16:57 ET (20:57 GMT), the U.S. dollar index, which tracks the greenback against a basket of six major peers, was up 0.2% to 101.26, its highest level since July 28. 

Oil prices on Thursday ate into their surge after a media report that the U.S. and Iran were discussing a phased deal that would reopen the Strait of Hormuz and lift an economic blockade on Tehran. 

Crude had jumped earlier, extending gains from the previous session, amid a dent to hopes for diplomatic progress between Washington and Tehran. 

At 12:29 ET (16:29 GMT), Brent crude futures expiring in November, the global benchmark, gained 1.8% to $104.95 a barrel, while U.S. West Texas Intermediate crude futures expiring in November added 2% to $94.01 a barrel. 

NEW YORK, Sept 24 (Reuters) - Oil prices jumped about 4% to a one-week high on Thursday after Yemen’s Iran-backed Houthis fired missiles at Saudi Arabia and diplomatic talks between the US and Iran showed little sign of progress.

Brent futures rose $4.10, or 4.0%, to $107.18 a barrel at 11:09 a.m. EDT (1509 GMT), while US West Texas Intermediate crude rose $3.66, or 4.0%, to $95.82.

After climbing about 8% over the past two days, Brent futures were on track to close at their highest since September 15. WTI was on track to rise for the first time in seven days after falling about 13% over the prior six days.

Gold prices edged lower on Thursday, extending a sharp selloff in the previous session, dragged down by growing bets on more Federal Reserve interest rate hikes this year. 

By 09:31 ET (13:31 GMT), spot gold had fallen by 0.3% to $4,275.09 an ounce, while gold futures had declined by 0.2% to $4,310.60 an ounce.

Gold has been sensitive to the Fed’s rate outlook, as investors assess whether an energy-price shock will keep inflation elevated and require further policy tightening. Higher rates tend to weigh on gold because the metal pays no interest.