2020.04.2310:51:00UTC+00Oil Extends Gains Amid Gulf Tensions

Oil prices rose sharply on Thursday to extend gains from the previous session, with rising tensions in the Middle East, signs of output cut by producers and the promise of more U.S. stimulus helping underpin sentiment.

Benchmark Brent crude soared 6.6 percent to $21.72 a barrel, while U.S. crude futures were up 10.4 percent at $15.22 a barrel.

Tensions between Washington and Tehran flared a new Wednesday after Iran's Revolutionary Guard conducted a space launch that could advance the country's long-range missile program.

U.S. President Donald Trump last night threatened to engage Iranian vessels that "harassed" U.S. navy vessels in the Strait of Hormuz.

Oil producers are reportedly considering further steps to reduce output. Saudi Arabia has said it is ready to take extra measures with other producers.

The U.S. Congress looked on course to approve nearly $500 billion more in aid to help small businesses, while European Union leaders will make another attempt to agree on a shared fiscal response to a recession looming as a result of the coronavirus pandemic.

Trump said he will sign the bill and then plans to begin discussions on additional legislation to provide fiscal relief for states and local governments, increase infrastructure spending, provide tax incentives for restaurants and entertainment businesses and cut payroll taxes.