Oil prices climb as markets weigh Trump's potential Iran strike

• "The prospect of Iranian retaliation against regional energy production and transportation poses a significant upside risk to crude prices, and traders may already be pricing in a non-trivial degree of disruption," consulting firm ClearView Energy Partners said in a note.

State of play: The global benchmark Brent crude is trading in the mid-$65 per barrel this morning.

• Prices are at their highest point since last October, with reported drone strikes on oil tankers in the Black Sea compounding upward pressure from tensions with Iran.
• Prices have also climbed higher since the U.S. toppled Venezuelan President Nicolás Maduro earlier this month.
• But Trump officials are keen to boost Venezuelan flows by easing U.S. restrictions, which would be bearish for the market.

Catch up quick: Crude prices jumped Tuesday after President Trump called on the Iranian people to "keep protesting" and "take over" government institutions.

• It's the most explicit backing Trump has given to the idea of toppling the Iranian regime since the protests started more than two weeks ago, Axios' Barak Ravid reports.
• Trump was largely noncommittal on U.S. plans in a CBS News interview Tuesday evening as the White House weighs options.

What we're watching: A U.S. strike against Iranian leaders would likely send prices higher still as traders assess risks of supply disruption there or elsewhere in the region.

• But the global market is awash in oil, with production outstripping demand growth, which limits price spikes.