On Monday, Brent crude rose towards $111 on worries over supply disruptions after Iran warned Gulf Arab neighbors of consequences if they raised output of oil for replacing Iranian barrels facing international sanctions.

Brent crude gained 29 cents to $110.73 a barrel by 0529 GMT.

“The United States is trying to persuade buyers to stop importing oil from Iran, while each country is studying its options, its situation,” said Ken Hasegawa, a derivatives manager with brokerage Newedge in Tokyo. “This situation will continue with high tension.”

Reuters market analyst Wang Tao said a bearish target at $108.91 per barrel has been lowered to $108.75 for Brent, while U.S. oil is expected to clear a support at $97.52 per barrel.

Tags: Brent crude, derivatives manager, international sanctions

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