April 16 (Reuters) - Oil prices rose on Tuesday amid
heightened tensions in the Middle East after Israel's military
chief said his country would respond to Iran's weekend missile
and drone attack amid calls for restraint by allies.
Brent futures for June delivery rose 46 cents, or
0.5%, to $90.56 a barrel by 0005 GMT. U.S. crude futures
for May delivery rose 43 cents, or 0.5%, to $85.84 a barrel.
Oil prices had ended Monday's session lower after Iran's
weekend attack on Israel proved to be less damaging than
anticipated, initially easing concerns of a quickly intensifying
conflict that could displace crude barrels.
The attack, which Iran called retaliation for an air strike
on its Damascus consulate, caused only modest damage, with
missiles shot down by Israel's Iron Dome defence system.
But Israel's Prime Minister Benjamin Netanyahu on Monday
summoned his war cabinet for the second time in less than 24
hours to weigh how to react to Iran's first-ever direct attack
on Israel, a government source said. That raised market concerns
that retaliatory measures could impact oil supply.
Iran produces more than 3 million barrels per day of crude
oil as a major producer within the Organization of the Petroleum
Exporting Countries (OPEC).
The benchmarks had risen on Friday in anticipation of Iran's
retaliatory assault, with prices soaring to their highest since
October.
In China, the world's biggest oil importer, official
gross domestic product figures due on Tuesday are expected to
show growth slowed to 4.6% year-on-year from 5.2% in the
previous three months. That would maintain pressure on
policymakers to unveil more economic stimulus measures that
could boost oil prices.