Oil extends gains on US-Iran tensions

LONDON, June 24 (Reuters): Oil prices rose on Monday, extending large gains last week that were prompted by tensions between Iran and the United States, as Washington was set to announce new sanctions on Tehran.

West Texas Intermediate crude was up 50 cents, or 0.87 per cent, at $57.93 a barrel.

Brent futures were up 9 cents, or 0.14 per cent, at $65.29 a barrel by 1040 GMT.

US President Donald Trump said on Friday he called off a military strike in retaliation for the shooting down of a US drone by Iran, saying the potential death toll would be disproportionate, adding on Sunday that he was not seeking war.

Oil prices surged after Iran shot down the aircraft on Thursday that the United States claimed was in international airspace and Tehran said was over its territory.