There was news on Thursday saying that the Obama administration expanded sanctions on Iran, in an effort to pressure the Middle East country to abandon its disputed nuclear program. The geopolitical concerns came back to the center of the oil market.

The U.S. Treasury and State Department targeted 11 companies working under Iran's Ministry of Defense for Armed Forces Logistics and dozens of banks and shipping companies that the U.S. believed were attempting to help Iran evade an EU oil import embargo against Iran.

U.S. official said the new sanctions focused on blocking Iran's efforts to continue exporting oil.

Besides Iran sanctions, the North Sea, important oil field for Europe and the globe, faced some production problems, which also dented to the crude supplies.

On the economic front, China's GDP growth rate for the second quarter slowed for a sixth consecutive quarter to 7.6 percent. Although it was the weakest pace in more than three years, it still eased concerns among the investors about a sharp slowdown in the world second largest economy.

And after the slowdown, investors were hoping that China's government could adopt more stimulus policies.

The Reuter's/University of Michigan's consumer sentiment index slipped 1.2 to 72.0 in July. And the U.S. producer price index unexpectedly edged up instead of declining as expected in June.

Light, sweet crude for August delivery rose 1.02 dollars, or 1. 18 percent to settle at 87.10 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for August delivery also jumped over 1 percent and last traded around 102 dollars a barrel.