Oil prices rose about 2% on Tuesday to their highest in two weeks as geopolitical tensions between Russia and Ukraine continued, and the U.S. and Iran appeared set to keep sanctions on OPEC+ members Russia and Iran in place for a while longer.

Brent crude futures rose $1, or 1.5%, to settle at $65.63 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 89 cents, or 1.4%, to settle at $63.41.

"Risk premiums have increased this week as the prospect of a Russia/Ukraine ceasefire and Iran nuclear deal now appear to have been put on hold for weeks or even months," analysts at energy advisory firm Ritterbusch and Associates said in a note.

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Russia says efforts to reach a settlement to end the war in Ukraine are very complicated and it would be wrong to expect an immediate decision, but it is waiting for Ukraine's reaction to its proposal.

Russia is a member of the OPEC+ group that includes the Organization of the Petroleum Exporting Countries and its allies, and is the world's second-largest crude producer in 2024 after the United States, according to U.S. energy data.

OPEC member Iran, meanwhile, is set to reject a U.S. nuclear deal proposal that would be key to easing sanctions on the major oil producer.

Iran is OPEC's third-largest crude producer in 2024 after Saudi Arabia and Iraq, according to U.S. energy data.

In Canada, wildfires burning in Alberta have affected more than 344,000 barrels per day of oil sands production, or about 7% of the country's total crude output, according to Reuters calculations. (alg)

Source: Reuters