U.S. oil settled slightly higher on Tuesday following reports that Iran had seized a cargo vessel, described initially by Iranian and Saudi media as a U.S. ship.
The crude market dipped earlier on expectations that data from the American Petroleum Institute would show U.S. crude stockpiles at record highs for the 16th consecutive week. The industry group will release its weekly report at 4:30 p.m. EDT on Tuesday.
U.S. June crude closed up 7 cents at $57.06 a barrel, after earlier spiking to $57.83. Brent June crude futures were down 17 cents to $64.66 a barrel, having earlier touched an intraday high of $65.49.
Iranian forces boarded the Marshall Islands-flagged MV Maersk Tigris in the Gulf after patrol boats fired warning shots across its bow and ordered the ship, travelling through the Strait of Hormuz, deeper into Iranian waters, the Pentagon said.
Reuters tracking data showed the Maersk Tigris close to the Iranian port of Bandar Abbas. The ship is managed by Singapore-based Rickmers Ship Management, which is part of Hamburg-based Rickmers Group.
Iran's Fars news agency and Saudi-owned Al Arabiya television reported earlier that Iran has taken control of a U.S. vessel and 34 crew for "trespassing" on territorial waters.