Oil prices rose on Monday to extend gains from last week, bolstered as tensions remain high between Iran and the United States after U.S. Secretary of State Mike Pompeo said “significant” sanctions would be announced on Tehran.
- Brent futures were up 50 cents, or 0.8%, at $65.70 a barrel by 0655 GMT.
- West Texas Intermediate crude was up 70 cents, or 1.2%, at $58.13 a barrel.
U.S. President Donald Trump said last week that he called off a military strike to retaliate for Iran’s downing of an unmanned U.S. drone, and he said on Sunday that he was not seeking war with Iran.
Oil is usually priced in dollars, so a weaker greenback makes it cheaper for holders of other currencies.
The U.S. Federal Reserve is expected to cut interest rates soon to bolster the U.S. economy, while the European Central Bank President Mario Draghi last week called for additional stimulus to boost growth.
Oil prices surged last week after Iran shot down a drone that the United States claimed was in international airspace and Tehran said was over its territory.
Companies added one oil rig in the week to June 21, bringing the total count to 789, Baker Hughes said in a closely followed report on Friday.
