Oil futures reversed initial gains as traders assessed possible retaliatory moves from Iran following US strikes against the Middle Eastern country's nuclear sites.

Oil prices slipped on Friday as the U.S. imposed new Iran-related sanctions marking a diplomatic approach that fed hopes of a negotiated agreement, a day after President Donald Trump said he might take two weeks to decide U.

Oil futures jumped 4% at the start of the first trading session since the U.S. launched direct attacks against Iran, casting further shadow over the supply outlook in the embattled oil-rich Middle Eastern region. U.S. crude oil rose $3.12, or 4.23%, to $76.96 per barrel, while global benchmark Brent jumped $3.27, or 4.25%, to $80.28 per barrel.