Oil up almost 2% as Iran's president vows to never surrender

Meanwhile, European low-sulphur gasoil's premium to Brent crude futures hit a record of about $95 a barrel after Trump said he backed the idea of a diesel export ban to lower prices that have hit record highs owing to a global supply shortage.

U.S. Energy Secretary Chris Wright said later that a diesel export ban would not work. Analysts and market watchers have warned that such a move would do little to ease high energy prices and could worsen global supplies and further disrupt economies.

Europe has depended on diesel and jet fuel imports from the U.S. during the U.S.-Israeli war on Iran.

"Brent is being underpinned by surging gasoil prices amid renewed worries the U.S. may introduce a diesel export ban," said Ole Hansen, head of commodity strategy at Saxo Bank.