International Business: Oil climbs on prospect of fresh Russia sanctions – Gulf Digital News

International Business: Oil climbs on prospect of fresh Russia sanctions – Gulf Digital News

SINGAPORE: Oil futures extended gains on Tuesday as the United States and Europe planned new sanctions to punish Moscow over alleged war crimes by Russian troops in Ukraine, adding to concerns about supply disruptions, while Iran nuclear talks stalled.

Brent crude futures rose $1.20, or 1.1%, to $108.73 a barrel, while US West Texas Intermediate futures were up $1.25, or 1.2%, at $104.53 a barrel at 0420 GMT.

Both contracts briefly jumped more than $2 a barrel in early Asian trade after Japanese industry minister Koichi Hagiuda said the International Energy Agency (IEA) was still working out details for a planned second round of a coordinated oil releases.

Global crude futures had settled up more than 3% on Monday on the threat of more sanctions on Russia over civilian killings in Ukraine and following a pause in Vienna on talks to revive the Iran nuclear deal, which could put more Iranian barrels into the market. Iran blamed the United States for halting the talks.

"The geopolitical tension is most likely to keep the oil price gaining in the coming days despite efforts made by US and allies," said Tina Teng, a markets analyst at CMC Markets APAC & Canada, referring to the coordinated oil