U.S. West Texas Intermediate (WTI) crude futures were up by 12 cents, or 0.2 percent, at $63.22 per barrel.
According to a Reuters report, ANZ bank said the rising tension in the Middle East meant a “risk premium is reflected in the price” of crude oil.
Asian shares edged up early on Tuesday as the U.S. temporarily eased trade restrictions imposed last week on China’s Huawei, but investors remained on edge as fears of an escalation in trade tensions between the world’s biggest two economies weighed on sentiment.
Washington allowed Huawei Technologies Co Ltd to purchase American-made goods in order to maintain existing networks and provide software updates to existing Huawei handsets until Aug. 19.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.35% but stayed not far from a four-month low touched on Friday.
“With the news around the U.S. and Huawei taking a turn for the worse, it seems that the trade war is increasingly showing signs of becoming a tech war,” Seema Shah, senior global investment Strategist at Principal Global Investors in London, told Reuters.
“The further this trend develops, the bigger the collateral damage will be – particularly in Asia and the U.S., but the ripple effect will be significant across the globe.”
Middle East markets
Saudi Arabia’s index dropped 0.7 percent on Monday as Al Rajhi Bank fell 0.7% and Saudi Basic Industries was off by 1.3%.
The Dubai index edged 0.3% lower, pressured by its financial stocks. Commercial Bank of Dubai dropped 8.8% while Amlak Finance dropped 5.2%.
Abu Dhabi's index ended flat. Axa Green Crescent Insurance Co dropped 10% and Gulf Medical Projects Co dipped 3.3%.
Qatar's index was up 0.3% with Gulf International Services and Mesaieed Petrochemical Holding Co rising 10% each.
Egypt's blue-chip index was down 1%, losing for a fourth straight day, with 23 of its 30 stocks sliding.
Kuwait’s premier market index was mainly flat, Bahrain’s index dropped 0.2 percent and Oman’s index fell 0.4 percent.
The dollar index against a basket of six major currencies was a shade higher at 97.965 after brushing 98.036 overnight, its highest since May 3.
Gold prices dropped on Tuesday.
Spot gold fell 0.2% to $1,275.61 per ounce at 0334 GMT.
U.S. gold futures also eased 0.2% to $1,275.20 an ounce.
(Reporting by Gerard Aoun; Editing by Mily Chakrabarty)
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