Oil Trades Near 8-Week High as Iran Threat Counters Europe Debt

Oil traded near the highest in almost eight weeks in London as speculation that sanctions against Iran will curb crude supplies countered concern that Europe’s debt crisis will worsen and slow demand.

European Union governments are moving closer to halting oil purchases from the Islamic republic in response to its nuclear program. A ban by the EU, which received 18 percent of Iran’s crude oil and condensate exports in the first half of last year, could send Brent crude to $125 a barrel, according to Societe Generale SA. Concern the European crisis will spread increased after Greece said deeper income cuts are the only way for the country to keep the euro and avert economic collapse.