World oil prices rose strongly this evening as the euro gained on hopes Greece's debt swap would be successful, with tensions over Iran also supporting the crude market.
US crude added 82 cents to $106.98 a barrel. Brent North Sea crude gained $1.85 to $125.97 in London.
More than 75% of private holders of Greek debt have indicated they plan to participate in the debt swap, a government source said this afternoon hours ahead of the deadline for the deal.
The euro gained against the US dollar as a result. A weaker US currency makes dollar-priced crude cheaper for buyers using stronger currencies, thereby stimulating demand.
Crude futures had fallen earlier this week, in line with most commodity markets, after top global energy consumer China slashed its economic growth outlook.
Meanwhile, the US yesterday demanded verifiable assurances that Iran was not building an atomic weapon after Iran said fresh nuclear talks would fail if they were used to pressure the country.
The prospect of new talks comes at a time of heightened tensions between Iran and Israel, and as Tehran struggles under a punishing new range of US and EU sanctions.
Western powers and Israel suspect Iran is seeking to build a nuclear bomb under the guise of a civilian atomic programme, a charge consistently denied by Tehran, which says its nuclear drive is for peaceful purposes.
