Ammon News - Oil prices extended gains on Tuesday as heightened concerns surrounding Iran and potential supply disruptions outweighed the prospect of increased crude supply from Venezuela.

Brent futures rose 22 cents, or 0.3%, to $64.09 a barrel by 0430 GMT, hovering near a two-month high struck in the previous session. U.S. West Texas Intermediate crude climbed 23 cents, or 0.4%, to $59.73.

"The price increase comes amid intensifying protests in Iran, raising the possibility of some form of intervention by the U.S.," ING commodities strategists said on Tuesday.

Iran, one of the biggest producers of the Organization of the Petroleum Exporting Countries, is facing its biggest anti-government demonstrations in years, drawing a warning from U.S. President Donald Trump of possible military action over lethal violence against protesters.

Trump is expected to meet senior advisers on Tuesday to discuss options on Iran, a U.S. official told Reuters.

The U.S. president said on Monday that any country that does business with Iran will be subjected to a tariff rate of 25% on any business conducted with the United States. Iran exports much of its oil to China.

Reuters