Oil: Iran stands firm on nuclear programme

Oil rose nearly US$1 on Tuesday as Iran stood firm over its nuclear programme and rebuffed pressure from the West for a quick response to an offer of incentives to suspend uranium enrichment.

Iran's stance raised oil market concern again that the spat may eventually disrupt crude supplies from Opec's second largest producer.

US crude futures for August delivery were up 94 cents at US$74.55 a barrel by 1814 GMT. London Brent rose US$1.05 to US$73.94 a barrel.

"It almost seems unreasonable to expect a resolution on Iran but people
got their hopes up," said Deborah White of SG CIB Commodities.

"But Friday and Monday the tone was more conciliatory. When Iran went back to its hard line today, that scared some people back into the market.

They have killed any hope of a deal any time soon," White said, adding investment funds bought heavily Tuesday.

Oil had retreated from a record high of US$75.58 a barrel hit last Friday, on expectations among investors that progress would finally be made in the dispute with Iran.

But talks between the EU's chief nuclear negotiator Ali Larijani and EU foreign policy chief Javier Solana Tuesday ended with no clear indication of a result.

- REUTERS