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Oil prices settled higher on Tuesday, supported by renewed geopolitical risks after Israeli strikes on Hamas targets in Qatar and the United States floated the prospect of new tariffs on India and China over Russian oil purchases.

Brent crude rose 37 cents, or 0.6%, to $66.02/barrel.

WTI climbed by the same margin to $62.63/barrel. Both benchmarks had surged more than $1 earlier in the session before paring back gains.

Prices spiked nearly 2% immediately after reports of the Israeli attack, but momentum eased as Washington assured Doha that no further strikes would occur on Qatari territory.

Separately, the US said that it was prepared to impose tariffs on India and China to pressure Moscow into negotiations with Ukraine. Washington, however, signalled it would only move ahead if the EU enacted similar measures.

Looking ahead, analysts caution that oil’s upside may remain constrained. The US Energy Information Administration (EIA) said global crude prices are expected to come under pressure in the coming months as inventories build.

Written: Farid Muzaffar