|Oil tops USD125 on fear of Iran sanctions||
LONDON (Reuters) - Oil rose above $125 a barrel on Thursday, on fear of sanctions against Iran.
Crude recovered from losses earlier in the week after a Greek government official said its bond swap offer was going well as banks and funds showed support, spurring optimism that the deal will pass and clear the way for a bailout package to avert an immediate default.
Front-month Brent added $1.21 to $125.33 a barrel by 1227 GMT, having touched earlier intra-day highs of $125.58. U.S. crude was up 78 cents at $106.94 a barrel, off slightly from earlier highs of $107.16.
Investors were still focused on the tensions over Iran, which have driven recent oil gains.
Supply tightness could become more apparent as Royal Dutch Shell starts looking for alternative crude when its deliveries of Iranian oil under outstanding contracts come to an end to comply with sanctions within weeks.
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