Oil prices held steady on Monday as concerns over the impact of U.S. tariff uncertainty and rising output from OPEC+ producers weighed on prices while potential sanctions on Iranian oil exports provided some support.

Brent crude was up 9 cents at $70.45 a barrel by 1310 GMT. U.S. West Texas Intermediate crude was at $67.19, up 15 cents.

Last week marked WTI's seventh straight weekly loss, its longest losing streak since November 2023, while Brent fell for a third straight week.

U.S. President Donald Trump's protectionist policies have rattled markets around the world, imposing and then delaying tariffs on its biggest oil suppliers, Canada and Mexico, while also raising duties on Chinese goods. China and Canada have responded with their own tariffs. Investors see the uncertainty over U.S. tariffs as a negative, but potential sanctions on Iran and Russia could provide support in the short term, said PVM analyst Tamas Varga.

"Looking at the bigger picture, the lingering uncertainty is likely to keep the oil rally short-lived."

Oil rebounded from a six-month low on Friday after Trump said the U.S. would increase sanctions on Russia if it fails to reach a ceasefire deal with Ukraine.

The U.S. is also studying ways to ease sanctions on Russia's energy sector if Russia agrees to end its war with Ukraine, two people familiar with the matter told Reuters.

Russian Deputy Prime Minister Alexander Novak said on Friday that OPEC+ could reverse the decision if there was a market imbalance.

On the supply side, Trump is also seeking to halt Iran's oil exports as part of efforts to pressure the country to rein in its nuclear program. Iran's Supreme Leader Ayatollah Ali Khamenei said on Saturday that his country would not be bullied into negotiating.

Investors will assess monthly reports from the International Energy Agency and OPEC later this week for forecasts on demand and supply. (Newsmaker23)

Source: Reuters