Oil prices rise ahead of U.S. sanctions on Iran

Oil prices rose on Wednesday, recovering some ground after two days of losses, as markets braced for the imposition of U.S. sanctions on Iran next week and stock markets clawed back some of their recent losses.

Benchmark Brent crude oil LCOc1 was up 35 cents at $76.26 a barrel by 1115 GMT. The contract fell 1.8 percent on Tuesday, at one point touching its lowest since Aug. 24 at $75.09.

U.S. light crude CLc1 was 25 cents higher at $66.43. It hit a two-month low of $65.33 a barrel on Tuesday.

New U.S. sanctions on Iran begin on Nov. 4 and Washington has made it clear to Tehran’s customers that it expects them to stop buying any Iranian crude oil from that date.

Imports of Iranian crude by major buyers in Asia hit a 32-month low in September, as China, South Korea and Japan sharply cut their purchases ahead of the sanctions, government and ship-tracking data showed.

Oil market sentiment also received some support from equity markets, which pulled back from 20-month lows on Wednesday after pledges by China to support its markets.