Oil prices rebounded by more than 1% on Tuesday, paring previous session’s losses, on supply concerns amid an escalating Middle East conflict, stronger U.S. services sector data and a cut in production at Libya’s Sharara oilfield.
Brent crude futures gained 97 cents, or 1.27%, to $77.27 a barrel by 0354 GMT, while U.S. West Texas Intermediate crude futures climbed $1.14, or 1.56%, to $74.08.
On Monday, both benchmarks fell about 1% against a backdrop of falling global stock markets.
Oil’s slide was limited by mounting concerns concerns that Iran, a key Middle Eastern producer, may retaliate against Israel and the U.S. for the assassination of a Hamas leader in Tehran and an Israeli attack that killed a Hezbollah commander in Lebanon, potentially leading to a wider regional war.
On Monday, at least five U.S. personnel were injured in an attack against a military base in Iraq, U.S. officials told Reuters. It was unclear whether the attack was linked to the retaliation threats.
