Oil holds near six-month high

Investors track US-Iran tensions, dollar strengthens

HOUSTON:

Oil prices consolidated their recent gains and held near six- month highs on Friday, supported by uncertainty over the future relationship or conflict between the US and Iran.

Brent crude futures were up 6 cents at $70.77 a barrel by 1727 GMT. The March contract expires later on Friday. US WTI crude fell 71 cents, or 1.08%, to $64.71 a barrel.

Oil prices had hit their highest since early August on Thursday after multiple sources said US President Donald Trump was weighing actions against Iran that included targeted strikes, raising concerns about supply disruptions. Both the US and Iran have since signalled willingness to engage in dialogue, but Tehran on Friday said its defence capabilities should not be included in any talks, stopping the climb by oil prices.

Meanwhile, the US, which has strengthened its military position in the Middle East in recent weeks, issued new sanctions targeting seven Iranian nationals and at least one entity.

A rise in the dollar from four-year lows hit earlier in the week put some pressure on oil prices. Friday's dollar strength followed Trump's announcement that he would pick former Federal Reserve Governor Kevin Warsh to head the US central bank when Jerome Powell's term ends in May.

A stronger dollar can limit demand from oil buyers paying in other currencies.