Oil prices rose this evening in tug-of-war trading, as supply risks and tensions over Iran's nuclear programme supported crude despite a lowering of China's economic growth target.
Brent crude rose 61 cents to $124.26 a barrel after falling as low as $122.66 earlier. US crude was up 10 cents at $106.80 a barrel.
Ahead of their Oval Office meeting, US President Barack Obama told Israeli Prime Minister Benjamin Netanyahu that Washington "has Israel's back" but said there was still time for diplomacy in the dispute with Iran over its nuclear programme.
Earlier, the United Nations' nuclear agency chief said there were indications of "activities" taking place at an Iranian military site that his inspectors want to visit as part of an investigation into Tehran's nuclear programme.
Western powers have already imposed a raft of economic sanctions on Tehran in a bid to halt its controversial nuclear programme, which is believed to mask a drive to build weapons.
Iran denies the charge, and has warned that it could close the Strait of Hormuz - a key transit route for global oil supplies - if increased Western sanctions halt Iranian oil exports. The country is the world's fifth largest oil exporter and the second biggest producer in the OPEC cartel.
Earlier, China cut its 2012 growth target to an eight-year low of 7.5% from its long-standing annual goal of 8%, affecting shares and raising the prospect of lower oil demand.
