Oil rises due to rising tensions between America and Iran
Oil prices rose on Tuesday as tensions between Iran and the United States surged, with expectations that OPEC will continue curbing supplies this year.
But the gains have dampened fears that a continuing trade war between Washington and Beijing could slow the global economy.
Brent crude was up 21 cents, or 0.3 percent, from the previous close.
US crude futures rose 31 cents, or 0.5 percent, to $ 63.41 a barrel.
"Tensions between the United States and Iran are mounting, as well as indications that Opec will continue its production cuts, driving oil up," said Jasper Lawler, head of research at London-based brokerage group Capital Group.
US President Donald Trump on Monday threatened Iran would face "enormous power" if it attacked US interests in the Middle East. This comes after a rocket attack on the Iraqi capital Baghdad, which Washington doubts in the presence of an armed group linked to Iran behind him.
Tensions are in a market already in short supply as the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers have been holding back supplies since the beginning of the year to support prices.
A meeting is scheduled for June 25-26 to discuss production policy, but the group is currently considering postponing the meeting to July 3-4, OPEC sources said on Monday, with Saudi Arabia signaling a willingness to continue curbing supplies.