Oil up on Greek austerity measures, Iran tensions

(Reuters) - Oil prices rose on Monday on cautious optimism after Greece's approval of austerity measures needed to avoid default also boosted the euro and equities.

The euro rose against the dollar after Sunday's approval by Greece's parliament of drastic cuts in wages, pensions and jobs, but concerns about hurdles still ahead as Greece tries to avoid a disorderly default limited gains.

Israel accused Iran and its Lebanese ally Hezbollah of being behind twin bomb attacks that targeted Israeli embassy staff in India and Georgia on Monday, wounding four people.

Iran denied involvement in the strike, while Hezbollah declined comment, and the incident amplified tensions between the West and Iran over Tehran's nuclear program.

Brent March crude rose 57 cents to $117.88 a barrel by 12:50 p.m. EST (1750 GMT), having reached $118.61, matching Friday's intraday peak. The Brent March contract expires on Tuesday.

U.S. March crude rose $1.40 to $100.07 a barrel, having pushed through the 20-day and 50-day moving averages and reached $100.62. U.S. March crude options expire on Tuesday.

"Crude oil prices continue to draw support from a familiar set of factors: progress on Greek sovereign debt, risk of supply disruption linked to sanctions against Iran, and refinery outages that are seen limiting gasoline supply," Tim Evans, energy analyst for Citi Futures Perspective, said in a note.

Futures turnover was under 400,000 lots traded and still well below 30-day averages for Brent and U.S. crude at midday in New York.

Intraday weakness in gas oil futures pulled Brent off highs, as Europe's recent deep freeze eased and uncertainty about economic prospects for the euro zone lingered.

U.S. heating oil futures slipped, hemmed in by another below-average weekly heating demand forecast for the country, with heating oil demand alone expected to be 10.7 percent below normal.

U.S. gasoline futures rose 1 percent as refinery closures and expected spring maintenance are expected to limit supply, with investor focus turning from the winter heating season toward an approaching summer driving season.