Oil prices settled 2.2 per cent&nbsp;higher on Thursday after attacks on<a href="https://www.wionews.com/world/iran-behind-tanker-attack-in-gulf-of-oman-us-acting-ambassador-jonathan-cohen-226968"> two oil tankers in the Gulf of Oman</a> stoked concerns of reduced crude trade flows through one of the world's key shipping routes.

The attacks near Iran and the <a href="https://www.wionews.com/world/tanker-attacks-in-gulf-of-oman-stoke-security-and-oil-fears-226939">Strait of Hormuz reignited worries </a>about an impact to flows from the Middle East if insurance companies begin to reduce coverage for voyages through the region and additional shipping companies suspend new bookings, analysts said.

Such a disruption "could further exacerbate the supply problem," said Andy Lipow, an analyst at Lipow Oil Associates in Houston.

Brent crude futures settled up $1.34, or 2.23%, at $61.31, having risen as much as 4.5% to $62.64.

US&nbsp;West Texas Intermediate crude futures were up $1.14, or 2.23%, at $52.28 a barrel. WTI earlier rose as much as 4.5% to $53.45.

US&nbsp;stocks rose after two days of declines, with the S&amp;P energy index rising the most among the 11 major S&amp;P sectors.

Oil tanker owners DHT Holdings and Heidmar suspended new bookings to the Mid-East Gulf, three ship brokers said.

"This is the second attack in a month's time," said John Kilduff, a partner at Again Capital LLC in New York. "It raises the ante for insurance risk."

Tensions in the Middle East have escalated since US&nbsp;President Donald Trump withdrew from a 2015 multinational nuclear pact with Iran and reimposed sanctions, notably targeting Tehran's oil exports.

Iran, which has distanced itself from the previous attacks, has said it would not be cowed by what it called psychological warfare.

The episode also fed fears of a new confrontation between Iran and the United States, which blamed Tehran for the incident.

US&nbsp;Secretary of State Mike Pompeo said the United States has assessed Iran was behind the attacks, and arrived at its conclusion based on intelligence, weapons used and the level of expertise needed for the attacks on the tankers in the Gulf of Oman.

Also supporting oil bulls were signs that Organization of the Petroleum Exporting Countries (OPEC) members were close to agreeing on continued production cuts.

However, Analysts said the price swings were subdued by recent grim forecasts for global crude demand.

"It's a surprise that the market reaction has been so muted," said Derek Brower, a director at RS Energy Group. "For traders, worries about the weakening global oil-demand picture are front of mind and enough to trump real, live geopolitical threats to physical supply."

Global crude demand growth will come in at 70,000 barrels per day (bpd) less than previously expected this year, around 1.14 million bpd, OPEC projected in its monthly oil market report.

"Significant downside risks from escalating trade disputes spilling over to global demand growth remain," OPEC said in the report.

The US&nbsp;Energy Department this week lowered its forecast of global demand to 1.2 million bpd, down by 200,000 bpd from its May forecast.

Analysts have also revised global oil demand growth forecasts lower after the US-China trade war has escalated since last month with an expanding exchange of tariffs.

Energy consultancy FGE and British bank Barclays this week revised down their global oil demand growth forecasts to around 1 million bpd from around 1.3 million bpd.

The forecast revisions come as investors grow increasingly worried about trade talks between the United States and China, which may be revived at the G20 summit in Japan in late June.

"The market has settled into the idea that trade negotiations will be protracted," said Harry Tchilinguirian, global head of commodities research at BNP Paribas. "Naturally, the extension of trade disputes could weigh on economic growth."

Both crude benchmarks are set for their biggest daily rises since early January, but they are nevertheless headed for a weekly loss.

Oil prices had slumped in the previous session on an unexpected rise in US&nbsp;crude stockpiles and a dimming outlook for global oil demand.

Oil prices settled 2.2 per cent higher on Thursday after attacks on two oil tankers in the Gulf of Oman stoked concerns of reduced crude trade flows through one of the world's key shipping routes.

Oil prices settled 2.2 per cent higher on Thursday after attacks on two oil tankers in the Gulf of Oman stoked concerns of reduced crude trade flows through one of the world's key shipping routes. The attacks near Iran and the Strait of Hormuz reignited worries about an impact to flows from the Middle East if insurance companies begin to reduce coverage for voyages through the region and additional shipping companies suspend new bookings, analysts said. Such a disruption "could further exacerbate the supply problem," said Andy Lipow, an analyst at Lipow Oil Associates in Houston. Brent crude futures settled up $1.34, or 2.23%, at $61.31, having risen as much as 4.5% to $62.64. US West Texas Intermediate crude futures were up $1.14, or 2.23%, at $52.28 a barrel. WTI earlier rose as much as 4.5% to $53.45. US stocks rose after two days of declines, with the S&P energy index rising the most among the 11 major S&P sectors. Oil tanker owners DHT Holdings and Heidmar suspended new bookings to the Mid-East Gulf, three ship brokers said. "This is the second attack in a month's time," said John Kilduff, a partner at Again Capital LLC in New York. "It raises the ante for insurance risk." Tensions in the Middle East have escalated since US President Donald Trump withdrew from a 2015 multinational nuclear pact with Iran and reimposed sanctions, notably targeting Tehran's oil exports. Iran, which has distanced itself from the previous attacks, has said it would not be cowed by what it called psychological warfare. The episode also fed fears of a new confrontation between Iran and the United States, which blamed Tehran for the incident. US Secretary of State Mike Pompeo said the United States has assessed Iran was behind the attacks, and arrived at its conclusion based on intelligence, weapons used and the level of expertise needed for the attacks on the tankers in the Gulf of Oman. Also supporting oil bulls were signs that Organization of the Petroleum Exporting Countries (OPEC) members were close to agreeing on continued production cuts. However, Analysts said the price swings were subdued by recent grim forecasts for global crude demand. "It's a surprise that the market reaction has been so muted," said Derek Brower, a director at RS Energy Group. "For traders, worries about the weakening global oil-demand picture are front of mind and enough to trump real, live geopolitical threats to physical supply." Global crude demand growth will come in at 70,000 barrels per day (bpd) less than previously expected this year, around 1.14 million bpd, OPEC projected in its monthly oil market report. "Significant downside risks from escalating trade disputes spilling over to global demand growth remain," OPEC said in the report. The US Energy Department this week lowered its forecast of global demand to 1.2 million bpd, down by 200,000 bpd from its May forecast. Analysts have also revised global oil demand growth forecasts lower after the US-China trade war has escalated since last month with an expanding exchange of tariffs. Energy consultancy FGE and British bank Barclays this week revised down their global oil demand growth forecasts to around 1 million bpd from around 1.3 million bpd. The forecast revisions come as investors grow increasingly worried about trade talks between the United States and China, which may be revived at the G20 summit in Japan in late June. "The market has settled into the idea that trade negotiations will be protracted," said Harry Tchilinguirian, global head of commodities research at BNP Paribas. "Naturally, the extension of trade disputes could weigh on economic growth." Both crude benchmarks are set for their biggest daily rises since early January, but they are nevertheless headed for a weekly loss. Oil prices had slumped in the previous session on an unexpected rise in US crude stockpiles and a dimming outlook for global oil demand.

Oil prices surge over tanker attack in Gulf of Oman

Nobody wants war in the <a href="https://www.wionews.com/world/tanker-attacks-in-gulf-of-oman-stoke-security-and-oil-fears-226939">Gulf of Oman</a>, China's foreign ministry said on Friday, calling on all sides to exercise restraint following attacks on oil tankers in those waters, and urging dialogue to resolve differences.

The United States <a href="https://www.wionews.com/world/irans-zarif-calls-oil-tanker-incidents-suspicious-wants-regional-talks-226847">blamed Iran</a> for Thursday's attacks that drove up oil prices and fuelled concern about a new US-Iranian confrontation, although Tehran has denied the accusation.

China was deeply concerned about the rising tension, said foreign ministry spokesman Geng Shuang.

"Nobody wants to see the war in the Gulf. That is not in anyone's interest," he told a regular news briefing in Beijing, adding that China hoped all sides could resolve differences via dialogue.

"We hope all relevant parties remain calm and exercise restraint and avoid tensions further escalating, and hope all sides can jointly safeguard navigational safety in the relevant waters and regional peace and stability."

China would continue to safeguard its energy security and the lawful rights of its companies, he added.

Earlier, the ministry cited President Xi Jinping as telling Iran's President Hassan Rouhani on the sidelines of a summit in Kyrgyzstan that China would promote steady development of ties with Iran, no matter how the international situation changed.

"China has always viewed Sino-Iranian relations from a strategic and long-term perspective," the ministry paraphrased Xi as saying, but it made no mention of the tension in the Gulf region.

China and Iran have close energy ties, and Beijing has been angered by US threats against countries and companies that violate US sanctions by importing Iranian oil.

China has had to walk a fine line as it has also been cultivating relations with Iran's regional rival, Saudi Arabia, which is also the Asian giant's top oil supplier.

It was not immediately clear what befell the tankers, the Norwegian-owned Front Altair and the Japanese-owned Kokuka Courageous, which both suffered explosions, forcing crews to abandon the vessels, leaving them adrift in waters between Gulf Arab states and Iran.

On Thursday night, US Central Command spokesman Bill Urban released a video of what the US military said was an Iranian Revolutionary Guard Corp Gashti Class patrol boat approaching the Kokuka Courageous "and was observed and recorded removing (an) unexploded limpet mine from the Kokuka Courageous."

Iran "categorically" rejected U.S. claims about the attacked tankers.

Tension between Iran and the United States has risen since U.S. President Donald Trump pulled out of a deal last year between Iran and global powers that aimed to curb Tehran's nuclear ambitions in exchange for sanctions relief.

Nobody wants war in the Gulf of Oman, China's foreign ministry said on Friday, calling on all sides to exercise restraint following attacks on oil tankers in those waters, and urging dialogue to resolve differences.

Nobody wants war in the Gulf of Oman, China's foreign ministry said on Friday, calling on all sides to exercise restraint following attacks on oil tankers in those waters, and urging dialogue to resolve differences. The United States blamed Iran for Thursday's attacks that drove up oil prices and fuelled concern about a new US-Iranian confrontation, although Tehran has denied the accusation. China was deeply concerned about the rising tension, said foreign ministry spokesman Geng Shuang. "Nobody wants to see the war in the Gulf. That is not in anyone's interest," he told a regular news briefing in Beijing, adding that China hoped all sides could resolve differences via dialogue. "We hope all relevant parties remain calm and exercise restraint and avoid tensions further escalating, and hope all sides can jointly safeguard navigational safety in the relevant waters and regional peace and stability." China would continue to safeguard its energy security and the lawful rights of its companies, he added. Earlier, the ministry cited President Xi Jinping as telling Iran's President Hassan Rouhani on the sidelines of a summit in Kyrgyzstan that China would promote steady development of ties with Iran, no matter how the international situation changed. "China has always viewed Sino-Iranian relations from a strategic and long-term perspective," the ministry paraphrased Xi as saying, but it made no mention of the tension in the Gulf region. China and Iran have close energy ties, and Beijing has been angered by US threats against countries and companies that violate US sanctions by importing Iranian oil. China has had to walk a fine line as it has also been cultivating relations with Iran's regional rival, Saudi Arabia, which is also the Asian giant's top oil supplier. It was not immediately clear what befell the tankers, the Norwegian-owned Front Altair and the Japanese-owned Kokuka Courageous, which both suffered explosions, forcing crews to abandon the vessels, leaving them adrift in waters between Gulf Arab states and Iran. On Thursday night, US Central Command spokesman Bill Urban released a video of what the US military said was an Iranian Revolutionary Guard Corp Gashti Class patrol boat approaching the Kokuka Courageous "and was observed and recorded removing (an) unexploded limpet mine from the Kokuka Courageous." Iran "categorically" rejected U.S. claims about the attacked tankers. Tension between Iran and the United States has risen since U.S. President Donald Trump pulled out of a deal last year between Iran and global powers that aimed to curb Tehran's nuclear ambitions in exchange for sanctions relief.

China says nobody wants war after tanker attacks in Gulf of Oman

How magnetic mines disrupted oil tankers in Strait of Hormuz