SINGAPORE, Jan 30 Reuters Oil prices gained on Tuesday following a more than 1 drop the previous session as escalating geopolitical tensions in major producing region the Middle East fuelled supply concerns.

Brent crude futures rose 7 cents, or 0.07, to 82.46 a barrel by 0734 GMT. U.S. West Texas Intermediate crude was up 15 cents, or 0.31, at 76.93 a barrel.

Both the contracts fell over 1 on Monday as a deepening real estate crisis fuelled worries about demand from China, the world39;s biggest crude consumer, after a Hong Kong court ordered the liquidation of property giant China Evergrande Group.

Oil price trading above US80bbl is pricing in some geopolitical risk premium again as flare ups continue in the Middle East region. This could fade out within a week or two if there is no strong reaction from the US, said DBS Bank39;s energy sector team lead Suvro Sarkar.

If it does worsen into a USIran standoff and stricter sanctions, then we are looking at US80100bbl range for oil to sustain for some time, he added.

Washington vowed to take all necessary actions to defend its troops following a deadly drone attack in Jordan by Iranbacked militants, the first U.S. military deaths since the IsraelGaza war began, putting markets on edge.

If U.S.Iran tensions escalate, particularly through a direct confrontation, the risk rises that Iran39;s oil supply is adversely impacted. Iranian39;s oil exports are likely the most vulnerable via potentially greater enforcement of…