Brent crude futures rose above $116 to a six-month high on Tuesday as fresh threats from Iran to ban exports to some European states stoked supply concerns, overshadowing fears that Greece's debt crisis was worsening, Reuters reported.
Brent's premium to U.S. oil stayed CL-LCO1=R around $19 a barrel, near its highest since November, as a severe cold wave spread across Europe and as simmering tensions between the West and Iran escalated. But Greece's wrangling over a bailout fund helped cap those gains.
Front-month Brent increased 25 cents to $116.18 a barrel by 0804 GMT, gaining for a sixth straight day. The benchmark earlier touched $116.70 , its highest since early August. U.S. oil added 27 cents to $97.18, recouping some of the last session's losses.
Supply worries and Europe's cold weather offset a firmer dollar index. A stronger U.S. currency typically weighs on oil as it pressures dollar-denominated commodities by making them more expensive for consumers using other currencies.
Iran's parliament said on Tuesday it was ready to impose a ban on oil exports to some European states, the country's English-language Press TV reported, pre-empting a ban announced by the Union slated to begin from July 1.
President Barack Obama tightened sanctions on Iran another notch, the White House said on Monday, targeting its central bank and giving U.S. banks new powers to freeze assets linked to the government.
Iran responded to the announcement by calling the decision an "antagonistic move".
Edited by: S. Isayev
...