Oil hovers near seven-month highs ahead of US-Iran talks

LONDON, Feb 25 (Reuters): Oil prices held around seven-month highs on Wednesday as investors weighed up the threat to oil supply from potential military conflict between the US and Iran.

Brent futures were up 33 cents at $71.10 a barrel by 1127 GMT. WTI futures gained 22 cents to $65.85.

Brent prices reached their highest since July 31 on Friday while WTI hit its highest since August 4 on Monday, as the US positioned military forces in the Middle East to try to compel Iran to negotiate an end to its nuclear and ballistic missile programme.

An extended conflict could disrupt supplies from Iran, the third-biggest crude producer in the Organization of the Petroleum Exporting Countries, and other countries in the key Middle East producing region.

Supporting oil prices, US President Donald Trump briefly laid out his case for a possible attack on Iran in his State of the Union speech on Tuesday.