WASHINGTON (dpa-AFX) - Crude oil futures ended notably higher on Monday, extending gains to a third straight session, amid rising tensions between the U.S. and Iran following the downing of a U.S. drone by the Islamist Revolutionary Guard Corps (IRGC) last week.
U.S. President Donald Trump who said last week that he called off a retaliatory attack on Iran but will continue to increase pressure on Tehran until the regime abandons its dangerous activities, slapped fresh sanctions on the country today.
However, oil's gains were capped amid likely possibility of a drop in global energy demand due to the impact of the ongoing trade issues between the U.S. and China.
West Texas Intermediate Crude oil futures for August ended up $0.47, or about 0.8%, at $57.90 a barrel, the highest settlement since May 29, 2019.
On Friday, WTI crude oil futures ended up $0.36, or 0.6%, at $57.43 a barrel, after rising as much as 5.7% a session earlier. Oil futures climbed up nearly 9% last week.
U.S. President Trump signed an executive order today that includes sanctions on Iran's Supreme Leader, Ayatollah Ali Khamenei, as well as the Supreme Leader's Office.
Trump's order will deny Iran's leadership access to financial resources and authorizes the targeting of persons appointed to certain positions by the Supreme Leader or the Supreme Leader's Office.
Any foreign financial institution that knowingly facilitates a significant financial transaction for entities designated under the order could be cut off from the U.S. financial system.
Meanwhile, there are concerns about energy demand growth. The International Energy Agency (IEA) said in its report that it had revised down its estimate for crude demand growth in 2019, citing the U.S.-China trade row.
Markets now look ahead to the upcoming meeting of the OPEC members and their allies. The group is expected to discuss whether to extend output reductions beyond June 2019.
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