Oil prices rose to their highest in seven weeks on Wednesday as U.S. President Donald Trump said a deal had been done with China, heightening expectations of a de-escalation in trade tensions between the world's two largest economies.

A sustained surge in oil prices is likely to complicate the U.S. fight against inflation. A $10-a-barrel increase would boost year-over-year growth in the consumer-price index by 0.5 percentage points,

US and Brent crude prices jumped on fears of supply disruption from the Middle East as Iran has repeatedly threatened to close a key shipping route.

Oil prices surged and stocks slumped on Friday morning in the immediate hours after Israel began an attack on Iran targeting nuclear sites and senior military officers. The strike stoked concern among investors about a possible wider conflict across the Middle East, which accounts for a large share of global oil production.