Oil has jumped more than 10% since mid-June as rising tension between the U.S. and Iran spurs fears of disruptions to global energy flows or even outright war. That has reversed a decline driven by the escalating trade conflict between Washington and Beijing. A planned meeting between Trump and Chinese President Xi Jinping this week, and a gathering of OPEC and allied producers days later in Vienna, may provide fresh direction for the market.

“The geopolitical risk premium is partly offset by another stand-off, namely between the U.S. and China,” said Tamas Varga, an analyst at PVM Oil Associates Ltd. in London.

West Texas Intermediate for August delivery slipped 5 cents to $57.85 a barrel on the New York Mercantile Exchange as of 10:50 a.m. London time.

Brent for August settlement slid 17 cents to $64.69 a barrel on London’s ICE Futures Europe Exchange, extending Monday’s decline. The benchmark crude contract traded at a premium of $6.82 to WTI.

Trump told reporters at the White House that the sanctions would deny financial resources to Khamenei, who is the one ultimately “responsible for the hostile conduct of the regime.” The penalties “mean the permanent closure of the diplomatic path with the government of the United States,” Iran Foreign Ministry spokesman Abbas Mousavi said, according to the semi-official Iranian Students News Agency.