Oil prices rise as investors track Greece and Iran

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Oil prices climbed on Tuesday after debt-laden Greece secured a huge bailout and as traders kept a close watch over Iran, analysts said.

Crude prices had reached their highest levels in nine months on Monday in anticipation of a Greek rescue deal and after Iran said it would halt oil exports to Britain and France.

In late London deals on Tuesday, Brent North Sea crude for delivery in April rose by 47 cents to USD 120.52 a barrel. New York's main contract, light sweet crude for March, jumped USD 1.43 to USD 104.67.

"Due to the lack of major US economic data today (Tuesday), investors' attention will remain to the Middle East for any further signs about the current oil supplies as Iran supply risk is likely to dominate the markets for the short-medium term," said Myrto Sokou, commodities analyst at Sucden Financial Research.

"Obviously there's a cheer in Europe over the news in Greece," Justin Harper, head of research at IG Markets Singapore, told the media, adding however: "There are still uncertainties in Europe and Greece."

The huge eurozone rescue package, hammered out on Tuesday after marathon talks in Brussels, saves Greece from default, at least for now, and keeps it in the single currency bloc under strict controls.

The ball is now back in Athens' court to push through legislative reforms required under the 237-billion euro deal, including an amendment of its constitution to ensure that priority is granted to debt repayments.