Oil prices stabilized after their biggest four-day gains in more than six months, as US officials planned to discuss the Iranian issue during a meeting at the White House.
Brent crude traded near $65 a barrel, having added more than 9% over the previous four sessions, while West Texas Intermediate crude traded below $61.
US President Donald Trump urged Iranians to continue protests against the government of Supreme Leader Ali Khamenei, and said he would take necessary measures once he had a clear picture of the number of deaths among the protesters.
Trump indicated that his next step would depend on a National Security Council meeting scheduled for later Tuesday. According to a senior U.S. official, Vice President J.D. Vance was slated to chair the meeting.
Watch for disruptions in Iran and supply risks
Traders are monitoring the unrest in Iran and the possibility of US intervention, which could threaten the country's oil production of about 3.3 million barrels per day.
In the same context, US Energy Secretary Chris Wright told Fox News that the United States would be happy to be a trading partner for Iranian oil in the event of the regime's downfall.
Oil prices rebounded at the start of the new year after turmoil in OPEC's fourth-largest producer, coupled with unrest in Venezuela, reintroduced a risk premium to prices, following a five-month losing streak fueled by expectations of a supply glut. This rally surprised a market heavily bet against the market.
US inventory data and Black Sea tensions
Chu Mei, an analyst at a research institute affiliated with Chaos Turner Futures, said: The market remains caught between the reality of oversupply and escalating geopolitical risks.
He added: In the short term, developments in Iran could lead to a new wave of price volatility, and any US military action is likely to push oil prices higher.
On the actual market side, an industry report indicated that US crude inventories rose by 5.3 million barrels last week.
If official data expected later on Wednesday confirms this increase, it will be the largest in two months. The report from the American Petroleum Institute also showed increases in gasoline and distillate inventories.
In the Black Sea, two tankers were attacked near the Caspian Pipeline Union terminal, complicating Kazakhstan's oil exports at a time when planned shipments were already affected by bad weather and damage to loading berths.
