CORRECTED-Oil prices steady, U.S.-Iran tensions remain in focus

(Corrects paragraph 2 to show Brent fell 0.5% on Monday, not
rose 0.5%; corrects paragraph 3 to show WTI gained 0.8% on
Monday, not fell 0.8%)
TOKYO, June 25 (Reuters) - Oil prices were steady on
Tuesday, supported by worries over conflict between Iran and the
United States but pressured by concerns about a potential
decline in demand for crude.
Benchmark Brent crude futures LCOc1 were up 3 cents at
$64.89 a barrel by 0034 GMT. They fell 0.5% on Monday.
U.S. crude futures CLc1 were down 3 cents at $57.87 a
barrel. The U.S. benchmark rose 0.8% in the previous session.
Brent rose 5% last week and U.S. crude surged 10% after Iran
shot down a U.S. drone on Thursday in the Gulf, adding to
tensions stoked by attacks on oil tankers in the area in May and
June. Washington has blamed the tanker attacks on Iran, which
denies having any role.
U.S. President Donald Trump targeted Iranian Supreme Leader
Ayatollah Ali Khamenei and other top Iranian officials with
sanctions on Monday, taking an unprecedented step to increase
pressure on Iran after Tehran's downing of the drone.
Trump also said on Twitter that other countries should
protect their own oil shipping in the Middle East rather than
have the United States protect them. But some said the threat of immediate military conflict had
eased slightly.
"Traders have lessened their odds for an immediate U.S.-Iran
escalation in this forever smouldering hot spot," said Stephen
Innes, managing partner at Vanguard Markets in Bangkok.
Meanwhile, hopes are waning for progress in Sino-U.S. trade
talks at this week's G20 meeting as investors await a meeting
between Presidents Donald Trump and Xi Jinping. Weak manufacturing data released on Monday by the Federal
Reserve Bank of Dallas added to worries about slipping demand
for crude oil. Supply is expected to remain relatively tight, as the
Organization of the Petroleum Exporting Countries and its allies
including Russia, an alliance known as OPEC+, appear likely to
extend a deal on curbing output when they meet on July 1-2 in
Vienna, analysts said.
Russian Energy Minister Alexander Novak said on Monday that
international cooperation on crude production had helped
stabilise oil markets and was more important than ever. He also
voiced concerns about demand.