BEIJING, Sept 10 (Reuters) - Oil prices rose on

Wednesday after Israel attacked Hamas leadership in Qatar and

U.S. President Donald Trump asked Europe to impose tariffs on

buyers of Russian oil, but a weak market outlook capped gains.

Brent crude futures rose 35 cents, or 0.53%, to

$66.74 a barrel by 0033 GMT, while U.S. West Texas Intermediate

crude futures gained 36 cents, or 0.57%, to $62.99 a

barrel.

Prices had settled up 0.6% in the previous trading session

after Israel said it had attacked Hamas leadership in Doha,

which Qatar's prime minister said threatened to derail peace

talks between Hamas and Israel.

The oil price response was seen as relatively limited

because of overall market weakness. Both benchmarks rose almost

2% shortly after the attack, but then retreated after the U.S.

told Doha such a thing would not happen again on its soil.

"The modest reaction in crude oil prices to this news, along

with scepticism regarding U.S. President Trump's claims about

potentially ramping up sanctions on Russian oil ... leaves crude

oil vulnerable to lower prices," IG market analyst Tony Sycamore

said in a note.

Trump has urged the European Union to impose 100% tariffs on

China and India as a strategy to pressure Russian President

Vladimir Putin, according to sources.

China and India are major buyers of Russian oil, which has

helped to support Russia's coffers since it launched its

invasion of Ukraine in 2022, despite heavy sanction pressure

from the U.S.

"The expansion of secondary tariffs to other major buyers

such as China could disrupt Russian crude exports and tighten

global supply, a bullish signal for oil prices," LSEG analysts

wrote.

"However, uncertainty remains over how far the

administration will go, as aggressive action could conflict with

efforts to manage inflation and influence the Federal Reserve to

reduce interest rates."

Traders expect the Federal Reserve to cut interest rates in

its meeting next week, which would boost economic activity and

demand for oil.

But fundamentals remain weak. The U.S. Energy Information

Administration cautioned global crude prices will be under

significant pressure in the coming months because of rising

inventories as OPEC+ increases output.