Oil price up on escalating Iran-America tensions

SINGAPORE, May 21 (Reuters): Oil prices rose on Tuesday on escalating US-Iran tensions and amid expectations that producer club OPEC will continue to withhold supply this year.

But gains were checked by concerns that a prolonged trade war between Washington and Beijing could lead to a global economic slowdown. Brent crude futures, the international benchmark for oil prices, were at $72.18 per barrel at 0651 GMT, up 21 cents, or 0.3 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were up 31 cents, or 0.5 per cent, at $63.41 per barrel.

"Escalating tensions between the US and Iran, in addition to signs that OPEC will continue its production cut, drove oil higher," said Jasper Lawler, head of research at futures brokerage London Capital Group.

US President on Monday threatened Iran with "great force" if it attacked US interests in the Middle East. This came after a rocket attack in Iraq's capital Baghdad, which Washington suspects to have been organised by militia with ties to Iran.