Oil prices rose this morning after the West slapped economic sanctions on major crude exporter Iran, helping to offset weak demand worries caused by the euro zone debt crisis.
By lunchtime, US crude had climbed $1.43 to $98.35 a barrel, while Brent North Sea crude was up $1.10 to $107.98.
Western powers yesterday imposed a new batch of sanctions targeting Iran's energy sector amid speculation of a possible Israeli military strike against Tehran.
The measures against Iran's financial, petrochemical and energy sectors announced by the US, Britain and Canada amounted to no more than "propaganda and psychological warfare," Iranian foreign ministry spokesman Ramin Mehmanparast said.
