Khaberni - Oil prices rose on Tuesday as growing concerns regarding Iran and the potential for supply disruptions overshadowed the chance of increased crude oil supplies from Venezuela.
Brent crude futures climbed 28 cents, or 0.4%, to $64.15 a barrel, hovering near the highest level in two months recorded in the previous session.
U.S. West Texas Intermediate (WTI) crude futures increased by 28 cents, or 0.5%, to $59.78, marking the highest level since December 8th recorded earlier in the session.
Iran, one of OPEC's largest producers, is facing the largest anti-government protests in years, prompting a warning from U.S. President Donald Trump about the possibility of military action due to violence against protesters.
A U.S. official said that Trump is expected to meet with top advisers later on Tuesday to discuss options concerning Iran.
The U.S. President said on Monday that any country trading with Iran will face a 25% tariff on any business dealings with the United States.
Barclays Bank noted in a memo, "The unrest in Iran has added about 3-4 dollars per barrel as a geopolitical risk premium to oil prices, from our perspective."
The markets are also watching for the potential of additional crude oil supplies from Venezuela.
Following the ousting of Venezuelan President Nicolas Maduro, Trump said last week that the Caracas government is expected to deliver up to 50 million barrels of oil, subject to Western sanctions, to the United States.
