Oil prices rise after US sanctions on Iran, escalated tensions in West Asia

Oil prices rose on Thursday after the US issued new Iran-related sanctions, data showed a higher-than-expected fuel inventory drawdown in the US and renewed tensions in the Middle East countered strength in the dollar.

Brent crude futures were up 97 cents, or 1.37 per cent, to $71.75 a barrel by 10:57 a.m. EDT (1457 GMT), having gained more than $1 during the session.

The US West Texas Intermediate crude (WTI) contract for April, expiring on Thursday, rose 96 cents to $68.12.  

The more actively traded WTI May contract rose 94 cents, or 1.4 per cent, to $67.85, having risen more than $1 during the session.

The US on Thursday issued new Iran-related sanctions, targeting one individual and several entities including a Chinese "teapot" oil refinery for purchasing and processing Iranian crude oil, the Treasury Department website showed.