Oil rises supported by strong data from the European Union

On Tuesday, oil prices saw an increase, buoyed by robust economic data from Europe and the ongoing consideration of potential new US sanctions on Iranian oil exports amidst continued tension in the Middle East.

As of 0847 GMT, Brent crude futures climbed by 80 cents, or 0.9 percent, reaching $87.80 per barrel, while US West Texas Intermediate crude futures rose by 71 cents, or 0.9 percent, to $82.61 per barrel.

The euro zone witnessed a significant uptick in overall business activity this month, marking its fastest pace of growth in nearly a year, driven by a robust recovery in the dominant services industry.

In response to Tehran’s recent missile and drone attack on Israel, European Union foreign ministers tentatively agreed on Monday to expand sanctions on Iran.

The US Senate is slated to deliberate on a foreign aid package that includes proposals for new sanctions on the Iranian oil sector. These sanctions would extend to foreign ports, ships, and refineries involved in processing or shipping Iranian crude intentionally.

Market focus remains on upcoming data releases, including first-quarter GDP figures in the United States on Thursday and the US Consumer Price Index, which serves as the Federal Reserve’s preferred measure of inflation, scheduled for release on Friday. These data points will provide insights into the trajectory of monetary policy.

Preliminary indications from a Reuters poll of analysts suggest that US crude oil inventories likely increased last week, while inventories of refined products are anticipated to decline.