Oil prices rose by more than 3% this evening as tension between Iran and the US kept fears of potential supply disruptions in focus. Positive Chinese and US economic data also supported the oil market at the start of 2012 trading.
Iran threatened to take action if the US Navy moves an aircraft carrier into the Gulf, the most aggressive statement yet after weeks of sabre-rattling as new US and EU financial sanctions take a toll on Iran's economy.
Weekend figures showed that China's big manufacturers narrowly avoided a contraction in December, easing fears of a slowdown. Strong US factory figures also lifted oil prices.
Brent crude rose $3.37 to $110.75 a barrel, while US crude gained $3.40 to $102.23.
