Oil prices fell this evening on revived concerns about the debt problems of Greece and the wider euro zone and their effect on the global economy, even as tensions between Iran and the West helped limit losses. Brent crude fell 38 cents to $110.20 a barrel. US crude fell 48 cents to $99.10.
Euro zone finance ministers today rejected as insufficient an offer made by bondholders to help restructure Greece's debts, sending negotiators back to the drawing board and raising the threat of a default.
Europe's debt situation weighed on the euro, helping to lift the dollar index. A stronger US currency tends to depress dollar-denominated oil prices.
Meanwhile, President Barack Obama said the US would continue to impose new sanctions on Iran over its disputed nuclear programme after the EU agreed on Monday to ban imports of Iranian crude starting in July.
Iran reiterated its threat to shut the Strait of Hormuz oil-shipping route if the EU sanctions affect the country's oil exports, and the potential for disruptions to supplies from the region continues to limit losses in oil prices.
