Crude up sharply on euro zone hope, Iran

REUTERS

U.S. crude futures rose sharply on Mondayon fresh hopes that Europe's leaders will unveil more approaches fortackling the euro-zone region's debt problems and on supply concerns tiedto tensions over Iran's controversial nuclear program.U.S. crude pushed above $100 a barrel intraday, world stocks rose fromlast week's seven-week low and the cost of insuring euro zone governmentbonds against default as hopes grew that euro zone leaders would unveilfresh measures to resolve the debt crisis.

Germany and France are exploring radical methods of securing deeper andmore rapid fiscal integration among euro zone countries, aware that gettingbroad backing for treaty changes may not be possible, officials say.The International Monetary Fund said it is not in discussions withItalian authorities on a financing plan, pouring cold water on speculationthat it was preparing an aid package as the euro zone debt crisis deepens.

A bill to downgrade Iran's relations with Britain got final approval onMonday, state broadcaster IRIB reported, a day after parliament approvedthe measure compelling the government to expel the British ambassador. Iran's parliament voted on Sunday to reduce diplomatic relations withBritain, with one lawmaker warning that Iranians angered by London's latestsanctions could storm the British embassy as they did to the U.S. missionin 1979.