2018.07.2405:51:00UTC+00Oil Rises After Trump's Iran Threat

Oil prices were slightly higher on Tuesday morning as the threat of military conflict between the United States and Iran outweighed worries over supply and global demand.

Brent crude futures were up 0.23 percent at $73.23 a barrel, while U.S. crude futures for September delivery were up half a percent at $68.25 a barrel.

After U.S. President Donald Trump threatened Iran with dire consequences, Iranian Foreign Minister Mohammad Javad Zarif asked him to be cautious.

Investors also remain concerned on the effects of rising production and weaker global demand as the U.S. and China battle it out in a trade war.

The American Petroleum Institute (API) crude inventories data will be released later today, with traders looking for indications of U.S. inventories.