Friday, June 16 2006 13:57 Hrs (IST) - World Time -

Singapore: "Oil prices climbed higher in Asian trade today (June 16,2006) on fresh concerns that Iran will not bow to Western pressure to curb its controversial nuclear programme," dealers said.

At 0820 IST (10:50 am), New York's main contract, light sweet crude for July delivery was up 60 cents to 70.10 US dollars a barrel from its close of 69.50 dollars in the United States yesterday.

Brent North Sea crude for August delivery gained 47 cents to 68.92 dollars.

"The market is reacting to the geo-political tensions over Iran again the supreme Iranian leader (Ayatollah Ali) Khamenei made some tough talk (on the nuclear issue)," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.

"The Iranian issue will linger on and provide a floor for prices," he said, adding that it would also take a 'major event' to push prices higher.

Khamenei said yesterday in Tehran that his country would not succumb to pressure over its atomic program, implicitly rejecting international calls to suspend nuclear enrichment.

"The Islamic Republic of Iran will not bend to these pressures," he said, referring to proposals drawn up by Britain, France and Germany, and backed by the United States, Russia and China, in a bid to defuse the nuclear crisis.

"The continuation of this scientific progress is (Iran's) fundamental and basic right," Khamenei said.