Oil inched up higher on Tuesday, after plunging the earlier session, as investors lingered to predict the risk from geopolitical worries in the Middle East.

The two benchmarks dipped by 18 cents at $87.18 per barrel while US WTI climbed by 16 cents to $82.06 per barrel.

The two benchmarks slumped 29 cents in the earlier session on hints that the latest intensified disruptions between Israel and Iran had a minor effect on supplies in the Middle East.

The escalated geopolitical tensions lingered critical in driving crude prices.

The U.S. adoption of fresh sanctions on Iran's oil sector, which expand the current penalties to cover foreign ports, boats, and refineries that knowingly process or ship Iranian crude, was highlighted by ANZ analysts, who mirrored the opinion expressed.

According to EU foreign policy leader Josep Borrell, foreign ministers on Monday agreed in principle to increase sanctions against Iran following Tehran's attack on Israel with missiles and drones.